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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
After opening close to 1445, onshore USD/KRW has spent much of the rest of the session trending lower. We are now back to 1433, 0.45% firmer in won terms since yesterday's close, while the 1 month NDF is 0.80% higher since the NY close. Above 1445/50 seems somewhat of a resistance zone in the pair.
- Today's resilience is also impressive in the context of on-going weakness in CNH. The chart below overlays USD/CNH spot against the 1 month USD/KRW NDF. Up until today the correlation between the two currencies has been fairly strong, particularly in recent weeks, but clearly the won has outperformed today.
- Higher onshore equities are helping, although gains are modest +0.20%, but this compares with the Taeix, off 1.20%. So, divergence with Taiwan equities may be helping. Note USD/TWD has continued to push higher today, last at 32.32. The broader USD trend is also slightly softer.
Fig 1: USD/KRW & USD/CNH 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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