May 17, 2024 02:53 GMT
1 Month USD/KRW Rebounds Back Towards 50-day EMA, BoK Next Week
KRW
1 month USD/KRW is up strongly in the first part of Friday dealings. We were last around 1355/56, +0.60% from NY closing levels on Thursday. We are around 15 won weaker versus intra-session lows from Thursday (near 1340).
- Spot USD/KRW is up 0.90%, its largest drop in a month. Weakness in the yen is not helping sentiment today (with USD/JPY trend back towards 156.00). USD/CNH is back above 7.2300 as well, amid mixed onshore data. BBG also notes some onshore demand for USDs from local firms.
- Local equities are off by 0.80%, but the Kospi remains above 2700.
- More broadly, the 1 month NDF couldn't sustain the break of the 100-day EMA (around 1345), while we sit back near the 50-day in terms of current levels (the 20day is higher, last above 1361).
- Earlier we had a steady unemployment rate at 2.8% for April, in line with expectations. Next week we get the first 20-days of trade data for May, along with the BoK decision. No change is expected at this stage by the consensus (3.50%).
Fig 1: USD/KRW 1 Month & Key EMAs
Source: MNI - Market News/Bloomberg
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