USD/KRW Threatening 1350 Break

1 month USD/KRW finished just under 1350 in NY, having spiked as high 1353. Dips back to 1344/45 are supported for now. Onshore spot finished yesterday at 1346.70. The focus is likely to rest with whether the pair can break above 1350.

• Earlier, activity data released for July suggests the economy lost momentum. IP figures came in at -1.3% versus -0.8% expected, which brings the YoY pace to +1.5% (+2.6% was forecast).
• The same release also showed retail sales and consumer spending also moderating in the month. Facilities investment fell 3.2% in the month, versus a +4% gain in June.
• The cyclical leading index also eased back to -0.3, which is back to lows from early 2022.
• The other focus point will be potential spill over from offshore equities onto the Kospi today. To recap, the Kospi gained just under 1% yesterday, while the Kosdaq was up 2.2%. Overnight US bourses and tech related indices were weaker.
• Offshore investors added a further $16.9mn to local shares. The week to date inflows has been very modest so far though at $27.7mn.
• Finally, note that security heads from the US, South Korea and Japan will meet in Hawaii from today until tomorrow.