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USD/KRW 1 Month Nears Topside 50-day EMA Test

KRW

1 month USD/KRW currently sits around Tuesday session highs, last in the 1287/88 region, onshore spot gaped higher at the open, and now tracks close to the 1289 level. USD/KRW 1 month mostly tracked higher post the Asia close on Tuesday in line with CNH and Yen weakness. The pair is comfortably above the 20-day EMA, (1281.50) with the 50-day sitting a little higher at 1290, while beyond that lies the 1300 region.

  • The won hasn't enjoyed any support from firmer yen levels in the first part of trade today, as the market takes on a more risk averse tone post the US ratings downgrade by Fitch.
  • The Kospi has opened up weaker, sitting off by 0.40% at this stage. This is in line with weakness in the major global indices during Tuesday trade and the weakness in US equity futures so far today.
  • Offshore investors were modest sellers of local equities yesterday (-$26.8mn).
  • We have already had July CPI print, which came in a touch below expectations. This may not shift BOK thinking much though, given headline base effects become less favorable as we progress through the second half.

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