USD/KRW Flat Amid Upbeat Trade, Manufacturing Data

The South Korean won was flat against its US peer to start the trading week, despite upbeat trade data supporting the nation’s economic recovery. The won, which was one of the top-performing currencies last year, has been unable to maintain its momentum in the first few weeks of the calendar year.

According to the Ministry of Trade, Industry & Energy (MOTIE), South Korea widened its trade surplus to $3.96 billion in January for the ninth consecutive month, despite its worst economic performance since the Asian Crisis of the 1990s.
Exports climbed 11.4% to $48 billion, beating the market forecast of 9.8%. Seoul reported gains in chips, automobiles, mobile devices, and petrochemical products. Shipments soared to the US (46.1%), China (22%), and the European Union (23.9%).
Imports advanced 3.1% to $4.05 billion, coming in higher than a market consensus of 1.9%. This was primarily due to the improving recovery in domestic demand in the fallout of the COVID-19 public health crisis.
On Monday, the IHS Markit manufacturing purchasing managers’ index (PMI) edged up to 53.2 in January, up from 52.9 in December. Economists had penciled in a reading of 52.5. The country’s manufacturing base had experienced higher output, buying levels, new orders, export orders, and business confidence. Employment levels dropped, however.
In the stock market, the Kospi Composite Index rose 2.7% to 3,056.53. Reuters notes that foreigners were net buyers of $117.67 million worth of shares in the benchmark index. With the government set to lift a pandemic-imposed ban on short-selling, online traders went on a stampede comparable to the Reddit Wall Street Bets crowd, triggering a rally in shorted stocks, like Celltrion and Samsung Electronics.
Meanwhile, the second wave of the coronavirus appears to have declined considerably, sliding below the seven-day average of 900. In total, South Korea has reported nearly 79,000 confirmed COVID-19 cases, with a death toll of 1,425.
The USD/KRW currency pair edged up 0.02% to 1,118.66, from an opening of 1,118.48, at 13:58 GMT on Monday. The EUR/KRW tumbled 0.39% to 1,352.42, from an opening of 1,357.49.
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Original from: www.earnforex.com