SOUTH KOREA: Country Wrap: Korea Pushes for 24HR FX Trading
Market Summary: The KOSPI has been hit hard by the semi conductor sector falls and is down -2.9% today, wiping out all of the gains for the week and the Won is the worst regional performer down -0.25% today and -1.1% for the week. Bonds have had a big sell off today with the 10-Yr +8bps today to 2.97% and +15bps for the week. The curve has steepened +3bp to +45bps.
- Korea will push for the 24-hour operation of its foreign exchange (FX) market and the establishment of an offshore Korean won settlement system as part of efforts to improve foreign accessibility to its capital markets, the finance ministry said Friday. (source Korea Times)
- The Korean won has been losing ground against the U.S. dollar, weakening to around 1,400 won per dollar for the first time in four months, triggering concerns over an undermined foreign investor sentiment — a key driver behind the country’s recent stock market rally. The main bourse KOSPI continues to record all-time highs, underpinned by foreign investors buying semiconductor shares. (source Korea Times)
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SCHATZ TECHS: (U5) Bear Cycle Intact
- RES 4: 107.300 Round number resistance
- RES 3: 107.245 High Jul 24
- RES 2: 107.153 50-day EMA
- RES 1: 107.100 High Aug 21
- PRICE: 107.070 @ 05:43 BST Aug 27
- SUP 1: 106.970 Low Aug 25
- SUP 2: 107.964 1.618 proj of the Jul 7 - 11 - 22 price swing
- SUP 3: 106.928 1.764 proj of the Jul 7 - 11 - 22 price swing
- SUP 4: 106.870 2.000 proj of the Jul 7 - 11 - 22 price swing
The trend outlook in Schatz futures remains bearish and gains are - for now - considered corrective. The contract traded to a fresh short-term cycle low yesterday and 106.985, the Aug 15 low, has been pierced. A clear breach of this level would resume the downtrend and mark an extension of the price sequence of lower lows and lower highs. This would open 106.964, a Fibonacci projection. Initial resistance is 107.078, the 20-day EMA.
GBPUSD TECHS: Bullish Signal Remains In Play
- RES 4: 1.3753 High High Jul 2
- RES 3: 1.3681 High Jul 4
- RES 2: 1.3636 76.4% retracement of the Jul 1 - Aug1 downleg
- RES 1: 1.3544/3595 High Aug 22 / 14
- PRICE: 1.3450 @ 06:25 BST Aug 27
- SUP 1: 1.3391 Low Aug 22
- SUP 2: 1.3315 61.8% retracement of the Aug 1 - 14 bull leg
- SUP 3: 1.3249 76.4% retracement of the Aug 1 - 14 bull leg
- SUP 4: 1.3142 Low Aug 1 and a key support
A rally on Aug 22 in GBPUSD continues to signal the end of the recent corrective phase - last Friday’s reversal pattern is a bullish engulfing candle. An extension higher would open the short-term bull trigger at 1.3595, the Aug 14 high. Clearance of this level would signal scope for a climb towards 1.3636, the 76.4% retracement of the bear leg between Jul 1 and Aug 1. Key short-term support has been defined at 1.3391, the Aug 22 low.
LOOK AHEAD: UK Timeline of Key Events (Times BST)
| Date | UK | Period | Event |
| 27-Aug | 1100 | Aug | CBI Distributive Trades |
| 29-Aug | 0730 | --- | DMO to release FQ3 (Oct-Dec) issuance ops calendar |
| 01-Sep | 0930 | Jul/Aug | BOE Lending to Individuals / M4 / S&P Manuf PMI (f) |
| 03-Sep | 0830 | --- | BOE Mann at Signum's London Westminster Day roundtable |
| 03-Sep | 0915 | --- | BOE Breeden at Money and Payments Conference |
| 03-Sep | 0930 | Aug | S&P Global Services / Composite PMI (Final) |
| 04-Sep | 0930 | Aug | BOE Decision Maker Panel data / S&P Construction PMI |
| 05-Sep | 0700 | Jul | Retail Sales |
| 08-Sep | 0001 | --- | KPMG / REC Report on Jobs |
| 09-Sep | 0001 | Aug | BRC-KPMG Shop Sales Monitor |
| 12-Sep | 0700 | Jul | GDP / Services / Production / Trade / Construction |
| 12-Sep | 0930 | Aug | Bank of England/Ipsos Inflation Attitudes Survey |
| 16-Sep | 0700 | Aug | Labour Market Survey |
| 17-Sep | 0700 | Aug | Consumer inflation report |
| 18-Sep | 1200 | --- | Bank Of England Interest Rate |
| 19-Sep | 0001 | Sep | Gfk Monthly Consumer Confidence |
| 19-Sep | 0700 | Aug | Public Sector Finances / Retail Sales |
