Euro, Yen Level, Low Price for the First Time…

The euro is falling in the forex market. JPY 114.35 was added to the yen temporarily on the morning of the 7th, and it has been the strongest yen and euro depreciation for the first time in about three and a half years since November 2016. On the 5th, the German Federal Constitutional Court judged that the European Central Bank (ECB) was partially unconstitutional with regard to quantitative easing, and Euro sales continue due to uncertainty about the future.

The exchange rate, which began trading on the 7th at 1229.0 won, up 6.9 won from the previous day, returned some of the increase afterwards, ending the closing price at 1225.0 won, up 2.9 won.

In recent years, the global financial market has not been able to take this direction, and the dollar / won has been repeating its daily trend.

US President Donald Trump said China will announce its implementation within a week or two, citing the possibility of non-compliance with trade agreements. As such, reflecting concerns over the expansion of US-China trade conflict, the dollar / won exchange rate started to rise on the same day, returning the decline the previous day.

In addition, the unemployment shock caused by the decline in private employment in the United States in April by about 20 million, the worst, also weighed on market sentiment.

However, as the major Asian markets were largely supported and the dollar / yuan (CNH) showed heavy flows on the day, the dollar / won top was blocked.

Since then, the dollar / yuan has followed the dollar / won flow as China’s exports to China, which had been unexpectedly booming, have been stepped up by the dollar / yuan. In April, China’s exports increased 3.5% compared to the same month last year, exceeding the Reuters forecast (-15.7%) for the first time since December last year.

However, the surplus in the US trade balance in April increased to US $ 228.7 billion, from March to US $ 1.53.3 billion. Amid the signs of a recurrence of the US-China trade conflict, there was a limit to these figures, and the risk on mood was limited.

After that, the exchange rate closed slightly, centering around 1225 won. The range of intraday trading was only 4 won.

A foreign exchange dealer at a bank said, “The market already knew about the deterioration of physical indicators, so the impact was limited. The dollar / won was slightly resold as the stock market was generally supported.”

“There is no special material in terms of supply and demand, and the current market is looking for new momentum,” he added. “We are watching how the US-China trade conflict will develop in the future.”

KOSPI ended the decline by 0.01%, and foreign investors net sold 300 billion won in the securities market.

** Market price 1,229.0, high price 1,229.0, low price 1,224.6, closing price 1,225.0

** Transaction volume: $ 69.08 billion in Seoul foreign exchange brokerage and $ 4.22 billion in Korean fund brokerage

** 8-day trading standard rate: 1,226.5

** Foreign stock net trading: net sales of KRW 143.3 billion in the securities market, net purchase of KRW 15.9 billion in the KOSDAQ market


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