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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
1 month USD/KRW sits below opening levels (near 1354), last tracking close to 1351. An earlier dip sub 1350 was supported though. The won is benefiting from some outperformance by higher beta FX, as US equity futures are higher and oil prices lower to start the week. This reverses some of the trends seen at the end of last week.
- This keeps us firmly within recent ranges for USD/KRW.
- Local South Korean equities are outperforming modestly within EM Asia markets, the Kospi last +0.40% and holding above 2300. The index is only modestly above recent lows, but the correlation with the won has been strong with USD/KRW in recent months, -77% in levels terms for the past 3 months (see the chart below, note equities are inverted on the chart).
- The won did outperform this most recent round of equity weakness, which may reflect official efforts to curb volatility in the FX.
- On the data front we had better retail sales momentum in Sep, up 9.5% y/y (prior 3.3%). But this isn't a closely followed release.
- IP for Sep is out early tomorrow, then on Wednesday October trade figures. Thursday delivers CPI for October.
Fig 1: 1 Month USD/KRW Versus Kospi (Inverted)
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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