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Move Sub 1400 Proves Fleeting, Tech Headwinds In Focus Today

KRW

1 month USD/KRW troughed just under 1397 towards the end of yesterday's session. We got above 1411 in NY trading overnight but finished close to 1407.50. The won couldn't escape broader USD strength, but still finished Thursday's session 0.62% firmer for the 1 month NDF. Note onshore spot ended yesterday at 1402.65.

  • Coming up we have August current account (last $1088.7mn) and goods balance data (-$1179.9mn last). There are no consensus estimates for either release.
  • Given the external headwinds are well known for South Korea and the prints are for August, this morning's data may not impact sentiment too much.
  • The positive impetus to the tech equity backdrop waned overnight (SOX -0.59%, MSCI IT -0.65%). Nasdaq futures are lower in early trading today as well, after chip maker AMD posted disappointing sales for Q3. Lower PC demand was the main driver of the result.
  • Such a backdrop may weigh on Korean equity sentiment today. To recap, the Kospi gained 1% yesterday (the Kosdaq (+3%), while offshore investors added $273.6mn to local stocks. Also note Samsung Electronics will release Q3 earnings guidance this morning.

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