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1 Month USD/KRW Gets Close to 1280 On Firmer US Yields/Tech Equity Drop


1 month USD/KRW saw a decent spike for Thursday's session, gaining nearly 0.9%. In NY trade on Thursday, we got close to 1278, before pulling back to 1276.65 by the close. Early Thursday lows were at 1260. On the topside rest all the key EMAs, with the 20-day nearest (close to 1283). Onshore spot finished at 1269.65 for Thursday.

  • Broader USD gains, amid a yield rebound weighed on the won. We also saw tech related equities underperform, the SOX fell 3.62% in Thursday US trade, the MSCI IT fell 2.22%. The carry over from some disappointing earnings and higher US yields likely weighing on sentiment in the space.
  • To recap, onshore equities were mixed yesterday, the Kospi down but Kosdaq higher. Offshore investors added $80.8mn to local shares. Week to date flows are modestly positive at +$191.2mn.
  • On the data front, we have already had June PPI, which fell -0.2% y/y, versus +0.5% prior.
  • Coming up a little later is the first 20-days trade for July. The first 10-days of July trade showed weaker export growth after the full month of June figures showed signs of less bearish momentum.

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