Spot Near 1340 Amid Broader USD Bounce, August PMI Coming Up

Spot USD/KRW ended extended Friday trade near 1338. USD/KRW was mostly supported on dips through the second half of last week, although we couldn't test above 1340. The 1 month NDF finished up near 1334.80, also comfortably up for the week.

• Broader USD sentiment recovered ground into end last week, as resilient data aided US yields
• Yesterday we had full month August trade data, which printed close to expectations. Exports were 11.4% y/y (forecast was 11.8%), while imports were up 6.0%y/y (forecast 6.3%). Both measures slowed relative to July outcomes, albeit marginally. The Trade surplus was $3829mn (forecast $4200mn).
• Today on the data front we have the August manufacturing PMI. A July online shopping trend report will also be released (per BBG).
• In the equity space US markets ended last week positively, while tech indices outperformed, the SOX up 2.58%, the MSCI IT up 1.00%.
• Last week saw just over $1.5bn in net equity outflows by offshore investors. The Kospi and Kosdaq ended Friday sessions higher though.
• For spot USD/KRW eyes will be on any test of 1340, with recent highs near 1344. On the downside, we are some distance above recent lows just under 1320.
• Finally, onshore media is reporting that 2025 FX stabilization bonds will be cut by a record amount. The government reportedly sees a low probability of strong won gains against the USD (see this BBG link).