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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 finished the NY session close to 1310.50. This was +0.30% higher for Tuesday's session, with the won, like CNH, underperforming broader USD weakness. Note onshore USD/KRW ended yesterday at 1315.80.
- Tech related equities underperformed during US trade on Tuesday, which likely weighed on the won at the margin. The SOX was off by 1.8%, the MSCI IT down by 0.45%. Broader US equity market sentiment was weaker, as recession fears rose on further data weakness (this time in the US labor market). This outweighed further US yield weakness.
- The chart below plots South Korean exports (y/y) to the US versus the ISM. Exports to the US had been somewhat of a bright spot, particularly relative to China, but softer US growth momentum may weigh going forward.
- For USD/KRW 1 month we are within recent ranges, albeit towards the upper end. The simple 200-day MA is nearby at 1324, while on the downside, the 50-day is back close to 1286.
- The KRW NEER continues to trend lower, back to mid-December lows (107.50 in terms of the J.P. Morgan Index).
- We have already had March FX reserves print, coming in at $426.07bn, versus $425.29bn in February. The data calendar is now quiet until the end of the week.
Fig 1: South Korean Exports To The US & US ISM
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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