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1 Month USD/KRW Gains Amid Weaker CNH & JPY Levels, Equity Pullback

KRW

1 month USD/KRW spent most the post Asia close tracking higher. The pair finished the NY session close to 1307, the first gain for the pair in 5 sessions (+0.71%). June 2 highs were close to 1312, while the 50-day MA is around 1321. Yesterday's low in the pair was just under 1295. Note onshore spot ended yesterday at 1303.85.

  • The 1 month NDF is back above its simple 100-day MA (near 1301), with higher USD/CNH and USD/JPY levels likely weighing on the won through Wednesday's NY session.
  • The local data calendar remains empty today. The BOK will release its quarterly monetary credit policy report at 12pm local time. This follows a non-rate decision board meeting.
  • In the tech equity space, we saw a pullback, with the MSCI Tech down 1.63%, losing ground for the 3rd straight session in US trade. The SOX fell a more modest 0.32%. Broader equity indices were also slightly weaker in in EU/US trade.
  • To recap, the Kospi was flat yesterday, but the Kosdaq rose 1.2%. Offshore investors added $125.2mn to local shares, the first meaningful net inflow this week.

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