USD/KRW Consolidates Under 1300, First 20-Days Trade Data Out Tomorrow
1 month USD/KRW consolidated under 1300 post the Asia close on Friday. Weaker USD/CNH levels helped, but we couldn't get sub 1287.50, which was above lows from earlier last week. We closed at 1293.40, a won loss of 0.21%. Note onshore spot ended last week at 1296.75.
- The data calendar is quiet today but tomorrow delivers Oct PPI, along with the first 20-days of trade data for November. This will be eyed for signs around the external demand pulse, which has improved in recent months.
- In the equity space, the lead for the Kospi is modestly positive today. The SOX ended last week +0.66% higher, +4.37% for the week. The MSCI IT index edged down but still rose 2.3% for the week.
- To recap, the Kospi ended last Friday down 0.74%, but isn't too far off recent highs. Resistance is evident ahead of the 2500 level. Offshore investors sold -$194mn of local shares on Friday, but weekly flows were still firm at $817.3mn.
- On the geopolitical front, closer economic ties between South Korea and Japan were discussed at a forum in the US late last week (see this BBG link).