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JPY/KRW Cross To Fresh Multi-Month Highs

KRW

1 month USD/KRW has tracked familiar ranges in early trade today. The pair spiked above 1310, as USD/CNH threatened to test above 6.8000. We are now back to the 1307/08 region, as USD/JPY has slumped through 131.00. KRW is very much underperforming the stronger yen trend though. The JPY/KRW cross is back close to 10.00, fresh highs going back to late May. Note the 200 day MA comes in at 10.0688 for this pair. Unwinding of yen cross long positions continues to be a key driver of short-term FX trends.

  • CNH and JPY moves are likely to be the main drivers of won sentiment today.
  • Elsewhere, the Kospi is down modestly (-0.50%) at this stage. Offshore investors are net sellers of local equities today (-$16.2mn so far), after net inflows of +$123mn yesterday.
  • Earlier, July CPI printed largely as expected. KTB futures are ticking higher (3yr to 105.51, +0.23 for the session) but fixed income markets elsewhere are seeing similar trends, with a modest risk-off tone prevailing in equity markets. US-China tensions remain the near term focus point ahead of Pelosi's planned trip to Taiwan.

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