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Free AccessMNI BRIEF: BOJ Tankan To Show Slipping Sentiment
MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday
1 Month USD/KRW Tests Downside Support At 100-day MA Before Rebounding
1 month USD/KRW got to fresh lows around 1297 late in Friday Asia Pac trade, before rebounding to 1305 by the NY close. Broader USD strength amid a yield recovery, aided the move higher in the pair, offsetting further equity strength in the major indices, although tech related plays underperformed broader benchmarks. For onshore spot we closed at 1305.35 on Friday.
- The low in the 1 month on Friday came close to the 100-day MA, which sits near 1298.50. Won sentiment is likely to be dictated by broader USD trends and equity sentiment in dealings today.
- Last week saw an impressive $1184.8mn offshore inflows into local equities. The Kospi closed above 2600 on Friday, fresh highs back to June last year.
- The early USD tone has been firmer though, amid heavy US Treasury Futures and slightly lower US equity futures.
- We have already had May FX reserves, which fell to $420.98bn from $426.68bn. Otherwise the data calendar is empty until this Friday. Note as well onshore markets will be closed tomorrow for the Memorial Day holiday.
- FinMin Choo will hold a meeting today on improving service industry outcomes at 2pm local time.
To read the full story
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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.