1 Month USD/KRW Holding Above 1370, Despite Continued Equity Gains

Like elsewhere, 1 month USD/KRW saw spill over from broader USD gains, particularly against EU currencies. EUR/USD fell amid on-going French political concerns. 1 month USD/KRW finished up in NY trade just under 1374, a won loss of near 0.40%. Note onshore spot finished up at 1373.9 yesterday, so close by.

• Broader 1 month USD/KRW ranges remain intact, with the pair maintaining a 1360-1380 range so far in June. The 50-day EMA comes in at 1363 on the downside.
• We are still seeing tech related indices outperform broader equity trends. The SOX was up nearly 1.5% in US trade, while the MSCI IT gain 0.95% for Thursday's session. To recap, the Kospi was up nearly 1% yesterday, while offshore investors $1255.7mn to local stocks.
• Such trends may be helping cap USD/KRW upside, albeit at the margins, with USD dollar trends still the dominant driver at this stage.
• On the data front, May trade prices printed earlier. We had m/m export and import prices lower, but still higher y/y reads. Export prices were up 7.5% (prior 6.5%), while import prices were 4.6%. Still to come later is April money supply figures.
• The local authorities are also pushing ahead with local FX reforms, with extended spot trading hours to begin from July 1 (see this Bloomberg link). This is part of a broader effort for South Korean assets to be included in global indices.