Won May See Positive Spill Over From Higher US Tech Futures, BoK To Hold Steady Today

1 month USD/KRW remained within recent ranges through Wednesday trade. We ended the NY session near 1331, little changed versus end Tuesday levels. Onshore spot ended yesterday at 1334.80.

• In the cross asset space, equity trends were mixed for KRW, while US yields tracked higher with the FOMC Minutes cautioning against rushing to cut rates.
• Early focus today will be on spill-over from higher US equity futures, particularly in the tech space, with Nasdaq futures around 0.95% higher at the moment. This follows a generally positive earnings update from tech/AI bellwether Nvidia in late US trade.
• Tech related indices were lower in Wednesday trade, but this should be offset by the higher futures backdrop.
• To recap, the Kospi eased 0.17% yesterday, while offshore investors sold -$133.4mn of local shares.
• As we have noted recently the spill over from stronger local equity trends in recent weeks hasn't impacted KRW much. For won bulls, the 20-day EMA (for the 1 month NDF) is close by, near 1330.
• the 50-day sits further south, around the 1324 level.
• We also have the BOK decision today, although no policy changes are expected. The central bank will revise its forecasts, but only minor changes are expected.