1 Month Breaches 1350, FTSE Keeps Korean Bonds On Watch List For Possible WGBI Inclusion

1 month USD/KRW got above 1350 late in Asia Pac trade on Wednesday, which was fresh highs in the pair back to early Nov last year. Note earlier Oct highs from last year came in just above 1360 for the 1 month. We pulled back as USD/JPY came lower (amid intervention risks), before finishing the NY session around 1348. This was a won loss of 0.46%. Note onshore spot finished yesterday at 1348.7.

• 1 month USD/KRW remains in a firm uptrend. There doesn't appear much official push back to this recent round of FX weakness. The 20-day EMA sits back near 1333.6, while upside focus is likely to rest on the potential break of 1350 and then test of 1360.
• The better US/EU global equity backdrop through Wednesday trade provided some support for the won, but only at the margins. The SOX rose 0.99%, while the MSCI IT edged up 0.10%. To recap, the Kospi edged down slightly yesterday, although offshore investors added $256.6mn to local shares.
• Such trends have not imparted a meaningful boost to KRW so far this month (offshore investors have purchased +$3.16 of local shares).
• The data calendar is empty today, but the BoK releases its financial stability report at 11am local time.
• FTSE kept South Korean bonds on the watch list for possible inclusion in the WGBI (see this BBG link for more details). The South Korean Finance Ministry stated it still aims for inclusion this year (note the next decision is in 6 months).