1 Month USD/KRW Back Above 1350, BoK Decision This Thursday

1 month USD/KRW ended last week just above 1351. The won lost 1% through the Thursday/Friday sessions in the NDF space. We are now back to earlier October levels, while highs from the 4th near 1362 is the next potential upside target. On the downside, recent lows come in close to 1333.40, while the 20-day EMA sits higher at 1342.75. Note onshore spot ended last Friday at 1350.05.

• The local data calendar is empty until tomorrow's September trade price data, while the main focus is likely to rest on Thursday's BOK decision. No change is expected.
• The government has announced this morning that it will extend the fuel tax cut through to the end of this year (see this link from Yonhap for more details).
• Sentiment for the won is likely to be guided by broader risk appetite. In Friday trade the SOX fell 2.70%, the MSCI IT index lost 1.6%, amid broader equity losses. US futures have ticked higher in the first part of trade today though, while the USD is softer against the majors (+0.20%).
• To recap, the Kospi ended 0.95% lower on Friday, while offshore investors sold $501mn of local shares last week, with $320.2mn in outflows coming on Friday.