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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 tracked familiar ranges late last week, with a 1227/1235 range for Friday's session. We ended NY trading close to 1229. Note onshore spot ended Friday's onshore session at 1231.30.
- The tone from equities was more mixed, although trends remained positive. The SOX down on Friday, while the MSCI IT rose. Both indices recorded strong weekly gains (SOX +5.39%, MSCI IT +4.22%). To recap, the Kospi rose 0.88% on Friday, leaving it at +4% for the week and the fourth straight week of gains.
- This is propelling firmer net equity inflows, although the won is lagging these moves, see the chart below. The past month has seen over $5bn of net equity inflows, with nearly $3bn coming in the past 5 trading sessions. The rate of won gains has slowed over this period though.
- One factor may be that the won ran ahead of the equity story through December, so has entered more of a consolidation phase in recent weeks. last week was also the LNY period, which may have impacted liquidity.
- On the data front, Dec retail sales are due between now and the end of the month, while IP figures print tomorrow.
- Elsewhere Japan is reportedly considering putting South Korea back on its trusted export list in a sign of improving relations. South Korea was removed from this list back in 2019.
Fig 1: South Korea Net Equity Flows KRW/USD 1 Month Change
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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