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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.
KRW
USD/KRW is sub 1300, with spot down 0.8% from yesterday's close, while the 1 month NDF is down close to 0.30% from NY closing levels (last at 1299). Onshore equities continue to grind higher. The won is moving in line with the equity trend, although a wedge persists, see the chart below, note the Kospi is inverted on the chart.
Fig 1: USD/KRW & Kospi Trends
Source: MNI/Market News/Bloomberg
- As we highlighted earlier, offshore net equity inflow momentum remains positive and continues some catch up to the better onshore equity picture.
- The second chart below plots the rolling 1 month sum of equity inflows, versus the 1 month change in KRW/USD. Net inflows are just over $2.5bn over the past month, with nearly $1.6bn in flows coming in over the past 6 trading sessions.
- Won gains beyond 1300 have not been sustained in recent weeks. Obviously, broader USD performance is important, although the KRW is outperforming dollar strength today. This is particularly evident in USD/KRW moving lower as USD/JPY pushed back above 133.00.
- The KRW NEER has stabilized in recent weeks but hasn't seen much upside beyond the 106.00 level (according to the J.P. Morgan estimate, see JBDNKRW <Index> on Bloomberg).
Fig 2: Net Equity Flows & KRW/USD Rolling 1 month Changes
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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