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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 was volatile post the Asia close on Tuesday. Dips back towards 1345 were supported, before the pair climbed to ~1353.50 in NY trade. We closed lower near 1350.50. This was a won loss of 0.45%, in line with broader USD index gains. Note onshore spot finished Tuesday's session nearby at 1350.65.
- Won headwinds came from a firmer USD backdrop, particularly yen weakness. The JPY/KRW cross is at multi year lows, see the chart below, which is something the authorities may be mindful of from an export competitiveness standpoint.
- Some offset came from the firmer equity backdrop. Major US and EU indices finished higher, while in the tech space, the MSCI IT index rose 0.53%, the SOX gained nearly 1%. US futures are down around 0.2% in the first part of Wednesday trade though.
- To recap, the Kospi lost 1.4% yesterday, with offshore investors selling -$350.7mn of local shares. This left October outflows at nearly $2.5bn.
- Coming up shortly is October Trade figures. Yesterday the South Korean FinMin stated that export growth should return to positive territory, which is in line with the consensus (+6.1% y/y forecast, prior -4.4%).
- Imports are projected at -2.1% y/y, prior -16.5%. The trade position is forecast to slip back into deficit (-$1700mn, versus $3697mn prior). Also out today is the S&P manufacturing PMI.
Fig 1: JPY/KRW Cross At Multi Year Lows
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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