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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.
KRW
Post the Asia close, 1 month USD/KRW was range bound between 1320-1325. We finished towards the bottom end of this range, around 1320.50. Note onshore spot closed slightly higher at 1322.60. Onshore markets are closed today, which will leave NDFs without an onshore spot anchor.
- More broadly, the 1 month USD/KRW is wedged between the 50-day (1313.32) and 200-day (1326) MAs.
- BoK Governor Rhee noted earlier in the week that won selling pressure may ease once the dividend outflow period is behind us. note that in May in 2021 and 2022 USD/KRW came down by -0.87% and -1.66% respectively. So, the seasonal backdrop may be more supportive (we are 1.13% firmer in won terms so far this month), although the 10yr average for USD/KRW in May is still +0.96% on average, see the heatmap below.
- In the equity space, the SOX and MSCI IT indices continued to trend lower, both indices down for the 3rd straight session. To recap, the Kospi finished around flat, with offshore investors selling -$71.3mn of local shares. We are still +$102mn for the week though.
- Note on Sunday, Japan PM Kishida commences his 2-day trip to South-Korea.
Fig 1: USD/KRW Heatmap
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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