© Reuters. [오늘의 환율전망] U.S. economic indicators improve… Expected to start lower by 9 won
The won/dollar exchange rate is expected to decline as the preference for safe assets weakens due to improvement in US economic indicators.
On the 18th, Kiwoom Securities predicted that the 1-month contract for New York difference-settled futures (NDF) would start at 1,267.02 won, down 9 won.
Kim Yu-mi, a researcher at Kiwoom Securities, said, “The dollar fell while the US retail sales were well announced, and the Fed’s positive outlook on the economy, along with the rebound in the New York stock market, eased the risk aversion in the financial market.”
US retail sales rose 0.9% in April compared to the previous month. Although it slowed down from the previous month’s announcement (1.4%), it was stronger than expected (0.8%). Excluding automobiles and gasoline, the figure also recorded 1.0%, a slowdown from the previous month’s (1.2%) figure, but exceeded expectations (0.6%).
US industrial production rose 1.1% MoM in April, beating the previous month’s estimate (0.9%) and expectations (0.4%). Manufacturing output also rose 0.8% from the previous month, beating the estimate of 0.3%.
The Federal Reserve Bank of Atlanta’s GDP Now forecast for the second quarter of its GDP growth forecast has been revised up to 2.5% from 1.8% announced on the 9th.
“U.S. retail sales in the US in April were revised upwards and core retail sales were announced better than expected, alleviating concerns about the economy overall,” said Kim. However, as the New York stock market rebounded, anxiety calmed down by showing a positive outlook on the economy.”
Read at Money S
