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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.
KRW
1 month USD/KRW has had a relatively steady start in Wednesday trade. The pair last near 1300, slightly weaker in won terms versus NY closing levels from Tuesday. Spot is down to 1302/03, +0.40% firmer in won terms, but this is largely reflective of USD weakness post yesterday's onshore spot close.
- Local equities are tracking to fresh multi month higher, the Kospi last near 2600, up 1% so far today. Offshore investors have returned to the local market, buying $105.7mn of local shares.
- The won looks a little too low relative to local equity strength, see the chart below, although the divergence is not large.
- Offsets have come from weaker yen levels post yesterday's dovish BoJ hold. A firmer energy price backdrop is also likely to weigh on the terms of trade backdrop, although commodity indices are only just off recent lows.
- We here from BoK Governor later on 2H inflation trends. Tomorrow's data highlight we be the first 20-days of trade data for Dec.
Fig 1: USD/KRW (Inverted) Versus Local Equities
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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