USD/KRW Looking To Hold Sub 50-day EMA, Strong Equity Inflows Week To Date

The won has had a relatively steady start to Friday dealings, albeit losing some ground against the USD. Spot USD/KRW was last near 1374, around 0.15% weaker in won terms versus end levels from extended spot trading on Thursday. The 1 month NDF was near 1372.

• The won gained 0.84% for Thursday's session, outperforming broader USD index softness, with the BBDXY index down nearly 0.50%, the DXY off close to 0.60%. Sharp yen gains, amid potential MOF intervention, post the softer US CPI print, likely saw some positive spill over to the won.
• Some offset came from a slump in US equities, led by the tech side. We saw rotation out of outperforming tech stocks into other sector that may benefit from lower US yields (as the lower CPI print fuels Fed easing expectations).
• The Kospi has opened weaker, off 1.0% at this stage. We have had a strong week of net inflows up to Thursday from offshore investors, just over $1.4bn, bringing July to date inflows to over $2.7bn.
• The local data calendar is empty today, but the FinMin will release monthly economic assessment data in around 30mins (per BBG).
• For USD/KRW spot, current levels are very close to the 50-day EMA (1374.6). Further south is the 100-day, near 1363. On the topside, early July lows were close to 1376, while the 20-day EMA is back around 1380.