KRW: Spot USD/KRW Holds Close To Recent Highs
Spot USD/KRW was lower at the open, 1317.50, but has since edged higher to be back in the 1319/20 region. The 1 month NDF sits slightly lower at 1316/17, little changed from closing levels in NY. The won hasn't received much positive spill over from better onshore equity sentiment, the Kopsi +0.70/0.80% in early dealings. Most focus has been on Samsung's earnings miss, although shares are rallying for the company after it stated it would cut chip production, which is aiding broader moves in the tech space.
- Focus for USD/KRW is likely to be on whether we can test recent highs above 1320. As we noted in the earlier bullet, dividend season could drive USD from onshore corporates in the next few weeks as they pay offshore investors.
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US TSYS: Cheaper Start
Cash Tsys have opened 1-3bps cheaper across the major benchmarks with some light bear flattening observed. Asia-Pac participants add to the the NY weakness in lieu of Fed Chair Powell's remarks at his Senate appearance. TYM3 deals at 110-27, -0-03+, at the base of its early 0-04+ range.
- Pockets of screen selling in TU, FV and TY futures came alongside the cash open.
- There is a thin data calendar in Asia-Pac hours leaving participants to digest Powell's hawkish rhetoric (he will appear on the Hill again on Wednesday).
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IRELAND: MNI BRIEF: Inflation Outlook Improved Since Q4: Ireland CB
Irish inflation will likely end 2023 at a lower level that previously envisaged, the Central Bank of Ireland said Wednesday. Publishing their Quarterly Bulletin for Q1 2023, the central bank said it saw Ireland's headline inflation at 5.0% this year, down from the 6.3% expected in the Q4 Bulletin. Headline inflation is seen falling to 2.2% in 2025, just above the ECB's eurozone-wide target of 2% -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.
