Won Rebound Curbed By Equity Losses

1 month USD/KRW edged away from recent highs post the Asia close on Thursday. From above 1340 we pulled back to ~1333, before closing in NY near 1337.6. This was the won's first gain since last Wednesday. Lows in the pair remain intact for this week ahead of the 1330 level, while upside resistance appears evident on moves above 1340. Note onshore spot finished yesterday at 1341.80, with resistance evident around 1343 yesterday.

• In the 1 month NDF space the won benefited from a rebound in CNH and lower USD/JPY levels, although late in NY trade, the equity pullback worked the other way and supported the USD.
• In Thursday US trade tech related indices finished weaker, the MSCI IT down -1.09%, the SOX -1%. Both indices have only recorded positive daily gains on a few occasions in August to date. The continued climb in US real yields (10yr to +197bps) is not helping sentiment in this space.
• To recap, the Kospi edged down -0.23% on Thursday, while offshore investors added +$31.2mn to local shares, leaving week to date outflows at -$280.7mn.
• The data calendar is empty until the first 20-days of trade data for August is out next Monday.
• There will be focus on the trilateral summit between the US, South Korea and Japan taking place at Camp David in the US later today. Some reports have suggested North Korea may test fire an ICBM to protest the leaders summit.