Published at 01:41 (GMT) 02 Sep
EMGA KRW FX FLOWS: USD/KRW touches 1011.1; Aug CPI eases to 1.4%y/y
Headline CPI in Aug grew by 1.4%y/y, the slowest rate since Mar 2014. Overall prices were dragged by transportation sector prices which declined at the fastest pace since May 2013. So far this year, inflation has averaged 1.4%y/y, well below central bank's target range of between 2.5 - 3.5%y/y.
Meanwhile, core inflation (ex food and fuel) continued to trend higher as prices grew by 2.35%y/y the fastest pace since Feb 2012.
In the breakdown, housing, water, electricity, gas and other fuels (contribute the most to CPI) inflation eased to 2.65%y/y, the slowest rate seen since Dec 2010. Food and beverages inflation was back into red as prices declined -0.45%y/y in Aug from 1.06%y/y rise in Jul. Meanwhile, food prices contracted 0.56%y/y from 1.07%y/y growth in Jul. Meanwhile, lower oil prices fed into transportation, where prices declined by 1.86%y/y.
On FX, USD/KRW declined to 1011.1, lows not see since 10 Jul, prices bounced a tad but were unable to touch back 1014.0. Prices last seen trading 1013.4 - 1013.7. Focus on immediate support at 1010.3 ahead of the stronger support at 1008.4, lows seen on 4 Jul and where a break will expose the next stronger support at 1005.1, 28 Jul 2008 lows. JPY/KRW declined to fresh 6-yr lows of below 9.700 as USD/JPY climbed above 104.500, touching 7-m highs. KOSPI trading in moderate gains down 0.6% at last check. BB
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.