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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
1 month USD/KRW got sub 1390 overnight, before finishing the NY session just under 1393. The won benefited from USD weakness against the majors, along with a firmer equity tone. It was also a noticeable outperformer compared to weaker CNH trend. Note onshore spot ended yesterday at 1401.35.
- The won continues to play catch up with the improved local equity market trend, see the chart below (note the Kospi is inverted on the chart).
- The backdrop suggests we can see further gains today, given overnight tech gains (SOX +2.18%, MSCI IT +1.60%), while yesterday offshore investors added a further $142.4mn to local stocks (the Kospi added +1% for the session).
- For the data calendar, we have the current account and goods balance data for September due shortly. There is no consensus estimate, but negative prints on both accounts have been a headwind for the won during this year's negative terms of trade backdrop.
- Finally, insurer Heungkuk Life has stated it will exercise a call option on its perpetual note, reversing last week's decision to delay early prepayment. This move had caused stress in South Korean credit markets.
Fig 1: USD/KRW 1 Month NDF & Kospi (Inverted) 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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