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Lower US Yields/Tech Equity Gains Aid Won, Onshore Markets Are Closed Today

KRW

1 month USD/KRW was mostly lower post the Asia close on Tuesday. Highs were marked around 1368 post the headline US PPI beat, but we fell towards 1362 not long after, although couldn't break sub this level. We finished the NY session near 1363.5, a modest gain in won terms. Note onshore spot finished up at 1369.15 yesterday.

  • The US PPI revisions and the fact that it has few ramifications for PCE, saw US yields finish around 4-5bps lower. We also saw a firmer US equity backdrop, while tech related indices outperformed. The SOX up near 1.7%, the MSCI IT up close to 0.80%.
  • These trends benefited the won, although 1 month USD/KRW remains very much within recent ranges. The 50-day EMA is at 1356.64, while upside resistance appears around the 1370 region.
  • The data calendar is empty today with onshore markets closed. Tomorrow, we get March money supply figures and then the unemployment rate on Friday.

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