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14 May 2015
Korea likely to ease - BAML
FXStreet (Guatemala) - By Adarsh Sinha, Claudio Piron and Rohit Garg, analyst at Bank of america Merrill Lynch explained that the Korean macro picture has continued to disappoint for various reasons.
Key Quotes:
"Won strength is one of them. Notsurprisingly, rhetoric on JPYKRW has also increased. Given aggressive intervention last month, we do not think the9.00level in JPYKRW will be broken on a sustained basis."
"As a result, we expect the BOK to ease in the upcoming MPC meeting on Friday."
"In the last month, the rates market seems to have priced out rate-cut expectations considerably. However, we think the reasons for this are unrelated toKorea's fundamentals."
"As such, current levels are attractive to position for our medium-term view that Korea will see much lower nominal rates."
Key Quotes:
"Won strength is one of them. Notsurprisingly, rhetoric on JPYKRW has also increased. Given aggressive intervention last month, we do not think the9.00level in JPYKRW will be broken on a sustained basis."
"As a result, we expect the BOK to ease in the upcoming MPC meeting on Friday."
"In the last month, the rates market seems to have priced out rate-cut expectations considerably. However, we think the reasons for this are unrelated toKorea's fundamentals."
"As such, current levels are attractive to position for our medium-term view that Korea will see much lower nominal rates."