KRW: Spot Back Above 1400 On Broad USD Rebound, Mar BoP Figures Today
Spot USD/KRW ended Thursday trade near 1405, a won loss of 0.92%, as broader USD sentiment improved. The rise in US equities, amid trade deal optimism, coupled with higher US Tsy yields (supported by better data), supported the dollar. Yen losses were over 1.4% in the G10 space, a likely won headwind as well.
- For spot USD/KRW, upside focus will rest near the 200-day EMA (close to 1415), which marked lows through April in the pair and should now be an upside resistance point. Lows this week rest at 1381.95, a potential support zone on any renewed USD bearishness.
- Broader USD gains, particularly against yen and to a lessor extent CNH losses, helped push USD/KRW back above 1400. The tone to US equities was positive, amid calls to buy from US President Trump and trade optimism, although the US-UK trade deal still needs to be worked out.
- The SOX rose 1.00%, while the MSCI IT index was up 0.93%. To recap, the Kospi firmed 0.22% yesterday, while offshore investors added $155.6mn to local stocks (bringing week to date inflows to $425.4mn).
- On the data front today we have March BoP current account and goods balance figures.
- US Commerce Secretary remarked earlier that trade deals with both Japan and South Korea will not be fast. South Korea has already said a comprehensive deal before the early June Presidential election was not going to be possible.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GOLD: Gold Weighing Further Tariff Headlines
- Gold’s uncertainty continued overnight with bullion finishing virtually where it started the day.
- As tariff headlines abounded, earlier gains that gold had eked out were erased, finishing at US$2,984.58
- The White House has said that it will be pursuing tariffs of up to 104% on Chinese goods whilst Chinese Premier Li said that his country had ‘ample tools’ to “fully offset” the tariffs.
- Whilst gold enjoys ‘safe haven’ status amongst investors, in times of high volatility investors seek liquidity, something gold does not exhibit.
- Gold has traded below the 20-day EMA of $3,021.80 and now sits at the mid-point between the 20-day EMA and the 50-day EMA at $2,948.16
- It has not traded below the 50-day EMA since the start of the year.
- Longer term EMA’s remain upward sloping (bullish momentum) but he 20-day EMA has turned down for the first time in 2025.
US: Trump Speech At NRCC Dinner Underway Shortly
US President Donald Trump is shortly due to deliver remarks at the National Republican Congressional Committee dinner at the National Building Museum in Washington, D.C. LIVESTREAM
- Trump's speech comes after he met with a group of House Republicans in the White House today to discuss concerns over the budget resolution that must pass the House this week to unlock the next step in budget reconciliation, the mechanism via which Republicans intend to legislate Trump's tax and spending agenda along party lines.
- See previous bullet: US: Trump To Meet w/House Republicans Today, Urge Support For Budget Blueprint
- Punchbowl News notes that today's speech will be a "not-so-subtle reminder that the House Republican majority revolves around him" as he exerts pressure on House Republicans to line up behind the Senate's budget blueprint.
OIL: Mixed US Fuel Inventory Data Last Week
Bloomberg reported that there was a US crude inventory drawdown of 1.1mn barrels last week but they rose 600k at Cushing, according to people familiar with the API data. Gasoline rose 200k while distillate fell 1.8mn. The official EIA data is out later today.
