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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.
KRW
1 month USD/KRW got close to 1430 overnight but closed just under 1427. Note onshore yesterday at 1424.65. Coming up this morning is October trade data, the market expects export growth to slip below 0% y/y, while the trade balance is forecast to improve modestly further to -$3.5bn from -$3.8bn (see this link for more details). Also due is the October manufacturing PMI (last was 47.3).
- Outside of the data prints, equity sentiment will be eyed. Tech equities underperformed broader market moves overnight. To recap, the Kospi rose 1.11% yesterday, putting it close to the 2300 level. Offshore investors added a further $180mn to local stocks, bring flows for October to just over +$2.1bn.
- Spill over from higher USD/CNH levels is also a risk. USD/KRW has had a lower beta to the recent up move in USD/CNH though, see the chart below. The better equity market backdrop in recent weeks has likely helped won outperformance relative to renewed CNH weakness.
- Finally, note the BoK minutes are out 4pm this afternoon local time.
Fig 1: USD/KRW 1 month NDF & USD/CNH - Past Month
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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