June 05, 2024 22:47 GMT
Won Outperforms, Aided By Tech Equity Surge, Local Markets Closed Today
KRW
1 month USD/KRW finished the Wednesday US session at 1367.6. This was a won gain of 0.30%, outperforming a slight rise in the DXY and a close to unchanged BBDXY index. Note spot won finished up just under 1373 yesterday.
- 1 month USD/KRW upticks above 1370 were faded post the Asia close on Wednesday, although we couldn't test earlier lows sub 1366. The 20-day EMA is very close to these levels (1365.6). Further south is the 50-day EMA, near 1360.5.
- Supporting won sentiment was surging tech related shares, the SOX rose just over 4.5% (as Nvidia rose above $3trln market value). the MSCI IT index gained over 2.5% as well.
- The US real yield fell back sub 2%, fresh lows since early April. US data was mixed with the ADP report weaker, but ISM services painting a more resilient growth outlook compared to recent survey measures.
- To recap, the Kospi rose just over 1% yesterday, while offshore investors added $469.5mn to local shares.
- Note local markets are closed today for Memorial day.
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