SOUTH KOREA: Lee Announces Nominations For Key Gov't Positions After Swearing-In

Jun-04 08:42

Following his swearing into office earlier today, President Lee Jae-myung has announced the nomination of Kim Min-seok as the new administration's first prime minister. Kim (61) has served two separate terms in the National Assembly (1996-2002 and since 2020), as well as a period as president of the DPK. He has served as an adviser to Lee and is seen as a close political ally. Lee described Kim as "the right person to overcome the crisis and restore the people's economy as he has both a concrete sense and the political power to unite". 

  • The former Minister of Unification Lee Jong-seok was nominated as the director of the National Intelligence Service. Lee is seen as a notable figure in the 'neutralist realignment' movement, which advocates for a more independent foreign policy for South Korea not so closely tied into that of the United States. He also worked on the 'Sunshine policy' of former President Kim Dae-jung, which sought reconciliation and cooperation with North Korea.
  • In his inaugural speech, Lee attempted to present a unifying view, saying "There will be no progressive or conservative, it will be a pragmatic market-oriented government", adding "Both Park Chung-hee and Kim Dae-jung policies are necessary". Park was a military officer who seized power in a coup in 1961 and served as president until his assassination in 1979. While suppressing civil rights, during his time in office the South Korean economy experienced rapid growth and development. Kim served as president around the turn of the millennium, and as noted above, was a key exponent of the 'Sunshine policy'. 

Historical bullets

EGB OPTIONS: Large Bund Condor

May-05 08:25

RXM5 132.00/133.50/135.00/136.50c condor, sold at 24.5 in 10k.

JPY: Testing high against the EUR and the Pound

May-05 08:22
  • Worth keeping an eye on the Yen (nothing fast nor big), testing session high against the Pound and the EUR.
  • The Dollar and the AUD are still lagging, but price action should still be somewhat limited with the Focus on the Fed this Week.
  • Small support in USDJPY is seen towards 143.73 (Friday's low) initially, but did trade as low as 142.88 last Thursday.

FOREX: FX OPTION EXPIRY

May-05 08:14

Of note:

EURUSD 1.72b at 1.1300 (could act as magnet).

EURGBP ~1bn at 0.8525.

USDCAD 2.66bn at 1.3865/1.3870 (a bit far).

USDCNY 1.51bn at 7.3000 (tue).

EURUSD 3bn at 1.1390/1.1400 (thu).

USDJPY 1.4bn at 143.00 (thu).

EURUSD 1.3bn at 1.1300 (fri).

USDJPY 1.8bn at 145.00 (fri).

  • EURUSD: 1.1285 (1.13bn), 1.1300 (1.72bn).
  • EURGBP: 0.8525 (900mln).
  • USDJPY: 144.00 (335mln).
  • USDCAD: 1.3865 (1.02bn), 1.3870 (1.64bn).
  • AUDUSD: 0.6500 (489mln).