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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
The 1 month USD/KRW downtrend continued post the Asia close, with the pair getting into the 1281/82 region, and a move back above 1286 drew selling interest. We closed back at session lows by the end of the NY session, just under 1282. The won was 0.25% higher in 1 month NDF terms for Monday's session. Onshore spot finished at 1288.20, so the early bias may be to the downside in the pair.
- We aren't too far off late Mar lows near 1274 for the 1 month NDF. A break sub this level could lead to a move into the 1260/70 region, levels last seen in the first half of Feb this year.
- The won continues to ride the better global equity market tone, particularly in the tech space. The MSCI IT index broke to fresh highs in Monday trade, rising nearly 2% and the index is back to levels from late Mar last year. The SOX rose 3.3% and is also at fresh highs back to Q1 last year.
- To recap, the Kospi retreated -0.45% yesterday, while offshore investors sold -230.6mn of local shares. The chart below shows the MSCI IT equity index against the Kospi, which is still providing a positive lead.
- There is no data out today, but note FinMin Choo appears in parliament at 2pm local time, then the BoK Mins from the May decision are out at 4pm.
Fig 1: MSCI IT Versus Kospi
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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