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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
The won has been supported in early trade, the 1 month USD/KRW NDF is down slightly on NY closing levels. The pair hasn't seen much downside beyond 1387 (last 1388.50) though. Onshore equities are higher, with the Kospi at +0.70% so far, but we are away from earlier highs (+1%). USD/CNH is also slightly higher, edging back above 7.0050, which has likely capped won gains to a degree.
- There is still a wedge with USD/KRW and onshore equities, although the gap has closed somewhat, largely due to some equity market catch up to the downside (see the chart below).
- Yesterday's lows were around 1383/84, while from late last week we got close to 1380, so these levels could be watched on the downside. On the topside, beyond 1395 creates the risk of intervention, either physical or verbal.
- We also await the outcome of today's meeting between the authorities and exporters/importers.
Fig 1: USD/KRW & Kospi Trends
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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