May 23, 2024 23:14 GMT
1 Month USD/KRW Can't Sustain Sub 1360 Levels Amid Better US Data
KRW
1 month USD/KRW finished up the NY session just above 1366. This was the fifth straight session loss for the won. We are back above all key EMAs, the 20-day the nearest near 1362. May 13 highs came in close to 1371, which could be an upside focus point. Note onshore spot finished up yesterday at 1362.35.
- Won loss ground through US trade post the better PMI beats (led by the services side). We were around 1358 prior to the prints. US yields finished higher across the benchmarks.
- An additional headwind for the won came via the pullback in US equities. The SPX lost 0.74%, although we did see tech related indices outperformed. The SOX finished near flat, the MSCI IT index was up 0.59%. Carry over from yesterday's Nvidia result helping sentiment in the chip/AI space.
- To recap, the Kospi finished down slightly yesterday, although the index remains above 2700. Offshore investors also added $305.5mn to local equities.
- The local data calendar is empty today, but the Vice Finance Minister will hold a meeting on inflation. The BoK will also release figures on residents FX deposits.
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