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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.
KRW
Friday trade has started with spot USD/KRW on a softer footing. The pair was last near 1379.5, around 0.10% stronger in won terms (we ended extended Thursday trade at 1381.05). Earlier lows were just under 1378. The 1 month USD/KRW is also lower, near 1377.
- Early positive impetus is coming from the stronger local equity tone. The Kospi is up 0.60%, leaving the index at fresh highs back to early 2022. An earlier Samsung profit beat for the tech bellwether is aiding local stock optimism.
- The chart below plots USD/KRW (which is inverted on the chart), against the Kospi index. While there is decent levels wedge between the two series, a degree of direction correlation remains.
- For spot USD/KRW downside focus is likely to rest on a potential test of 1373.23, which is the 50-day EMA support zone. We are sub the 20-day (near 1381). Highs so far in July rest just under 1392.
- Earlier data showed a strong goods balance surplus for May, while the current account surplus rose to above $8.9bn, fresh highs back to Q3 2021. The sharp swing back into surplus for investment income (after April's dividend related outflows caused a deficit) but a clear positive.
Fig 1: USD/KRW (Inverted) Versus Kospi Equity Index
Source: MNI - Market News/Bloomberg
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.
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