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Won Sentiment Recovers On Tech Equity Bounce

KRW

1 month USD/KRW spent most of the post Asia close on Monday pulling back from the 1318/19 region. We got to lows just under 1310 late in NY trade on Monday, with the won benefiting from the global equity bounce. Note onshore spot ended yesterday at 1315.85.

  • Recent highs in 1 month NDF remain just above 1320, which the pair hasn't been able to sustain going back to mid Nov. On the downside, the 20-day EMA is back near 1303.
  • On the data front we have Nov current account and goods balance data due shortly. the current account surplus has been on improving trend through H2 2023, but the data is quite dated.
  • The equity lead for the Kospi is positive today from offshore markets. The SOX surged 3.28% in Monday US trade, while the MSCI IT gained 2.62%. Note as well we get earnings guidance for Q4 from Samsung Electronics this morning.
  • To recap, the Kospi fell -0.40% yesterday, but offshore investors still added nearly $134mn to local shares.

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