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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
The early bias in USD/KRW 1 month is to the downside in Friday trade. We were last around 1324.5, around 0.25% stronger in won terms versus Thursday closing levels in NY (near 1327.74). Spot is back to the 1326/27 region, around 0.4% firmer in won terms.
- The 1 month NDF is challenging downside support in terms of the 20-day EMA, last near 1326. Beyond this we have the other key EMAs sitting between 1315/1319. See the chart below.
- The won is benefiting from the positive global equity led, lead from the tech side. Nasdaq futures sit nearly 0.85% higher in early trade today after a +1.3% cash gain in Thursday US trade.
- Positive Amazon earnings, coupled with a META share buy back are clear positive, although Apple's declining sales to China, may weigh on suppliers in the region, including South Korea names.
- Still, the Kospi is +1% higher in the first part of trade, building on strong gains from yesterday. Note offshore investors added $885.8mn to local shares yesterday.
- On the data front we have already had Jan CPI earlier, which came out modestly below expectations (see this link). Still, it isn't likely the BoK will pivot in a dovish direction in the near term.
Fig 1: USD/KRW 1 Month Versus Key EMAs
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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