Free Trial

USDKRW remains just clear of support.....>

KOREAN WON: USDKRW remains just clear of support at 1130.25 despite giving back
early gains, and a bull flag appears to be forming suggesting further upside. 
- While Korean interest rate swaps are on the rise, real yield spreads vs the US
continue to head in the latter's direction which should drive dollar
- Another problem facing the won is the potential for a rise in CDS spreads.
While Korea's economic fundamentals are solid, a rise in global risk aversion,
and particularly a rise in US junk bond yields, could drive a spike in Korea's
CDS, triggering a move higher in USDKRW. 
- The pair tends to be driven equally by real yield spreads and CDS spreads.

To read the full story


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.