July 28, 2022 23:11 GMT
1 month USD/KRW closed at fresh lows in NY, just above 1295.50. The overnight high in the pair came close to 1305, with this level likely to act as a near term resistance point. Note spot ended yesterday at 1299.50.
- The 50-day MA comes in at 1286.65, which could be challenged in coming sessions. The won is benefiting from better global equity sentiment, particularly in the tech space, while lower USD/JPY levels are also helping at the margin.
- The SOX (+1.15%) and MSCI IT (+1.49%) indices posted further solid gains overnight and US tech futures are on positive footing in early trade today, after earnings news for Amazon and Apple post the US close.
- Yesterday we saw $310.2mn in net equity inflows to Korean shares from offshore investors, which is the stronger daily net inflow since July 18th. As we noted yesterday, there is scope for net inflow to recover further given the rebound in local shares. The Kospi ended yesterday at +0.82%.
- On the data front, IP figures for June were better than expected MoM, at +1.9% versus -0.8% expected. However, YoY growth eased to 1.4% (from 7.4% previously.
- The South Korean Vice Finance Minister stated the country would record a trade deficit in July (note trade figures print on Monday), while July inflation is expected to have a 6% range (this data is out on Tuesday next week).