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1 Month USD/KRW Above 1340, CPI Eases, BoK Minutes Out Today


South Korean markets return today. The 1 month NDF did trade yesterday, albeit in what was lighter liquidity conditions. The pair got close to 1341 late in NY trade, amid broad USD strength and a firmer yield backdrop (post the ISM prices paid outcome). We finished a touch below this level into the close. Highs from last Thursday near 1344 remain intact. Note onshore spot finished last Friday at 1338.50.

  • On the data front, we have already had April CPI print, with the headline results as expected. The m/m came in at 0.2% and y/y 3.7%. Note the y/y prior was 4.2%. Core inflation momentum also slowed to 4.6%, from 4.8%. The authorities are likely to take some comfort from the move lower in inflation pressures (5.0%y/y was the core peak in Jan).
  • Note today the BoK minutes also print later.
  • The ABD annual meeting also takes place in Incheon from May 2-5, while the ASEAN +3 Finance Ministers and Central Bank Governors meeting will also be held in Incheon.
  • Headlines have also crossed of a trilateral meeting between the South Korea, China and Japan Finance Ministers. The South Korean Minster stating the country will look at ways to expand cooperation with both Japan and China.
  • Japan's Kishida will visit South Korea on May7-8 for a leaders summit.
  • The equity lead is slightly more positive for the Kospi, with some modest tech outperformance in US trade over Fri/Mon trade.

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