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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 now sits 1% sub NY closing levels from Thursday (spot is +1.65% firmer). This puts us in the 1318/19 region, not too far off Sep 19 lows near 1317.30. This is also right on the 200-day EMA. A this stage the 1 month NDF is +2.6% stronger for the past week, tracking for its best weekly gain since early Dec last year. Further downside in USD/KRW opens up early Sep lows around 1310.
- The won continues to show its high beta relationship with global equity shifts. Onshore the Kospi is +1% firmer today, with modest foreign inflows today.
- There is plenty of scope for foreign funds to return, with nearly $4.8bn in outflows in the past 3 months, see the chart below.
- A lot will depend though on the Fed outlook (with tonight's NFP the next litmus test), while tech related earnings have not been uniformly positive in recent weeks. Broader geopolitical risks in the Middle East will be another factor, although fears of escalation on this front have subsided in recent weeks.
Fig 1: South Korea - Offshore Net Equity Flows, Rolling 3 Month Sum (USDmn)
Source: MNI - Market News/BBG
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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