July 26, 2022 23:36 GMT
1 month USD/KRW dipped towards 1306 in early EU/London trading late yesterday but couldn't test below this level. We spent much of the overnight session grinding higher, closing in NY just above 1310. Note spot closed yesterday at 1307.90.
- Whilst the equity lead is negative from US markets overnight, US futures, particularly for tech (+1%), have opened up much firmer this morning on the back of more positive guidance post the US close from a number of companies. This could offset some of the overnight damage (the SOX dipped -1.6%, MSCI IT -1.8% overnight).
- To recap, the Kospi gained 0.4% yesterday, while offshore investors shed -$38.8mn in local shares. Flow trends have been moderate since the start of this week though, so don't appear to be a key driver of Korean won performance.
- Also, Tech company, SK Hynix, Q2 profits were better than expected on resilient chip demand and the weaker won. Other company earning results could also impact sentiment today.
- Earlier, South Korean consumer confidence fell sharply to 86.0, from 96.4 in June. This is lows going back to late 2020. 12 month ahead inflation expectations continued to surge as well, up to 4.7% versus 3.9% last month.
- Early tomorrow manufacturing and non-manufacturing sentiment publishes.