Published at 02:05 (GMT) 19 Sep
FT: South Korea's government on Thursday unveiled a plan to increase state spending by 5.7 per cent next year, as part of increasingly aggressive measures to spur economic growth. The increase in expenditure, which will reach Won376tn ($361bn) in 2015, is an acceleration from a 4 per cent increase this year and is in line with recent guidance from the finance minister. Under its formal plan, which will go before parliament on Tuesday, the government said that the budget deficit would rise from 1.7 per cent to 2.1 per cent of gross domestic product, with large increases in spending on social welfare, safety and support for new technology-based businesses.
USD/KRW came back off the opening high of 1044.80, also the highest level for 5 months, to current levels of 1041.95, with resistance seen ahead of 1045.00. Still JPYKRW is keeping at depressed levels of sub 9.6000, with the cross trading at a low of 9.57883 from 9.60118. Although that is still some way off the 9.5239 printed yesterday, we expect prices to continue trading with a heavy tone, especially with USD/JPY keeping at elevated levels. Do not rule out intervention as the cross approaches 9.5000. Meanwhile, producer prices in South Korea were down 0.1 percent on month in August, the Bank of Korea said on Friday - slowing from the 0.1 percent increase in July.
Recommended Content
Editors’ Picks
AUD/USD tests lows near 0.6550 after dismal Aussie Retail Sales, mixed China's PMIs
AUD/USD is testing lows near 0.6550 after Australian Retail Sales dropped by 0.4% in March while China's NBS April PMI data came in mixed. Upbeat China's Caixin Manufacturing PMI data fails to lift the Aussie Dollar amid a softer risk tone and the US Dollar rebound.
USD/JPY rebounds to 157.00 after Monday's suspected intervention-led crash
USD/JPY is trading close to 157.00, staging a solid rebound in the Asian session on Tuesday. The pair reverses a part of heavy losses incurred on Monday after the Japanese Yen rallied hard on probable FX market intervention by Japan's authorities. Poor Japan's jobs and Retail Sales data weigh on the Yen.
Gold prices soften as traders gear up for Fed monetary policy decision
Gold price snaps two days of gains, yet it remains within familiar levels, with traders bracing for the US Fed's monetary policy decision on May 1. The XAU/USD retreats below the daily open and trades at $2,334, down 0.11%, courtesy of an improvement in risk appetite.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.