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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
1 month USD/KRW has seen little further downside in the first part of Tuesday trade. The pair was last near 1350.5, around +0.30% above Monday NY closing levels. This comes despite a better onshore equity backdrop, with the Kospi up nearly 1% in the first part of trade today.
- Broader USD sentiment (ex AUD) has stabilized, which is likely working against the won, while USD/CNH also remains close to recent highs.
- There also remains little foreign sponsorship of a modestly firmer equity backdrop, see the chart below. Rolling 1 month changes in Kospi and MSCI IT index are comfortably off recent lows, but net equity outflows are nearly $3.4bn for the past month, which is back to mid 2022 lows.
- Some negative spill over may be evident from outflow pressure from China (via the Northbound Stock Connect), but until we see a firmer equity inflow backdrop it may remain a constraint on won gains.
Fig 1: South Korean Equity Inflows Lagging Better Equity Backdrop
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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