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1 Month USD/KRW To Fresh Multi Week Highs

KRW

1 month USD/KRW is trading with a firmer bias so far this morning. The pair has broken to fresh highs, getting close to 1265, before edging back below 1264 currently. The early tone in equities is weaker, the Kospi off by -0.35/0.40% at this stage, although loses have been contained so far. Offshore investors are modest net sellers of local equities (-$17.1mn in outflows art this stage).

  • Higher USD/CNH levels (back close to 6.8000) and USD/JPY back above 131.50 are likely weighing at the margin.
  • As noted earlier the 50-day EMA comes in around 1268, while beyond that is early Jan highs close to 1280. USD/KRW bears may need a move back below the 20-day EMA (1244.20) to re-establish more favourable won conditions, at least from a technical standpoint.

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