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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
Spot KRW is up around 1% in the first part of Thursday trade. The pair back into the 1343/44 region (session lows at 1341.85). The 1 month NDF is 0.40% firmer in won terms, last near 1341.75, also up slightly from session lows. More broadly, the won is riding the positive risk-on wave post the FOMC, amid further US yield weakness (albeit away from session lows) and positive equity trends.
- For the 1 month NDF we aren't too far away from the 50-day EMA, near 1338.80. We haven't been meaningfully sub this level since July of this year (see the chart below). The simple 50-day MA is also close by.
- Local equities have surged, 2% for the Kospi, back near the 2350 level. The Kosdaq is up 3.6%. This is line with tech equity trends from Wednesday's US session, with sentiment aided by lower US real yields.
- Earlier Oct CPI printed firmer than expected and the BoK noted after the release that future inflation was likely to exceed its August forecast (BBG).
Fig 1: USD/KRW 1 Month Close To 50-day EMA Downside Test
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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