CANADA MAY RETAILS -0.8% VS FORECAST -0.6%, PRIOR +0.6%

MNI: Canada June Retails Fall And May Biggest Drop In A Year

MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 477; GAS RIGS 103

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Spot USD/KRW Sub 1390, BOK Easing Odds Firm Post June CPI

KRW
EM BulletHomepagemarkets-real-timeBulletMarketsEmerging Market NewsForeign Exchange Bullets

Spot USD/KRW ended Tuesday trade just under 1387, after drawing selling interest above the 1390 level during Asia Pac hours. This was still a won loss of just over 0.2%. The 1 month NDF ended NY trade at 1384.4, also off recent highs.

  • The won saw some benefit post the Asia close on Tuesday from the modest pull back in US yields, which were weighed by some dovish remarks from Fed Chair Powell. However, overall moves were modest from a broader USD standpoint, with the BBDXY just off recent highs (last near 1269).
  • The equity backdrop was also positive for US markets, with tech indices outperforming. The SOX rose 1.24%, its best gain in a week, while the MSCI IT rose 0.54%. To recap, the Kospi fell 0.84% yesterday, while offshore investors sold -$97.3mn of local shares.
  • On the data front we have already had FX reserves print for June, which printed at $412.21bn, down a touch from the May read. The data calendar is quiet until Friday's goods balance/current account figures print for May.
  • Elsewhere market pricing in terms of the BoK outlook, we have around a full rate cut (25bps) priced in for the 6 month ahead period, see the chart below. The recent downtick (now near 3.20%) was aided by yesterday's softer headline CPI result. The current policy rate is 3.50% and the BoK meets next week.

Fig 1: Market Pricing For 6 Month Ahead BoK Outlook

Keep reading...Show less
255 words

To read the full story

Close

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.

Spot USD/KRW ended Tuesday trade just under 1387, after drawing selling interest above the 1390 level during Asia Pac hours. This was still a won loss of just over 0.2%. The 1 month NDF ended NY trade at 1384.4, also off recent highs.

  • The won saw some benefit post the Asia close on Tuesday from the modest pull back in US yields, which were weighed by some dovish remarks from Fed Chair Powell. However, overall moves were modest from a broader USD standpoint, with the BBDXY just off recent highs (last near 1269).
  • The equity backdrop was also positive for US markets, with tech indices outperforming. The SOX rose 1.24%, its best gain in a week, while the MSCI IT rose 0.54%. To recap, the Kospi fell 0.84% yesterday, while offshore investors sold -$97.3mn of local shares.
  • On the data front we have already had FX reserves print for June, which printed at $412.21bn, down a touch from the May read. The data calendar is quiet until Friday's goods balance/current account figures print for May.
  • Elsewhere market pricing in terms of the BoK outlook, we have around a full rate cut (25bps) priced in for the 6 month ahead period, see the chart below. The recent downtick (now near 3.20%) was aided by yesterday's softer headline CPI result. The current policy rate is 3.50% and the BoK meets next week.

Fig 1: Market Pricing For 6 Month Ahead BoK Outlook

Keep reading...Show less