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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
1 month USD/KRW fell close to -0.80% over the past 24 hours, with the won outperforming the rest of the Asia FX complex. Note the next best performing currency was SGD, which has gained 0.7% over this period. 1 month USD/KRW ended the NY session just under 1297. Note onshore spot closed yesterday at 1310.45, so we will see catch up in early trade today when onshore markets open.
- The 50-day MA comes in at 1296.20 today for the 1 month NDF. We spent some time below this level in late May/early June but ultimately it proved to be a false break on the downside, see the chart below.
- The won was buoyed by the sharp rise in equities, post the softer than expected US CPI release, with tech outperforming. The SOX rebounded 4.25%, nearly unwinding all of the previous session's loss. The MSCI IT index gain 3.0%, again outperforming main US equity index gains.
- To recap, the Kospi fell 0.9% yesterday, while offshore investors sold $140.4mn of local shares. These trends should be better today, although a cloud still hangs over the chip sector outlook, given disappointing company updates this week.
- Locally, data on tap includes the first 10 days export data for August. Exports were up 9.4% YoY in June. Later on, money supply figures are due for June.
Fig 1: USD/KRW To Test 50-Day MA On The Downside?
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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