1 Month USD/KRW Back Below 1300 Post FOMC

1 month USD/KRW finished NY trade on Wednesday at 1292.9 (a won gain of nearly 1%). This was very close to session lows, with pre FOMC levels around the 1317 level. Note onshore spot closed yesterday at 1320, so the early impetus will be to the downside when onshore markets open today.

• For the 1 month NDF, we are comfortably back sub all key EMAs, the 20-day is back near 1306.40. The rest sit between 1314 to 1318, which mark recent highs in the pair. On the downside, earlier Dec lows were at 1291.55, while Nov lows came in at 1281.7.
• The offshore lead for the Kospi is a positive one today, post the FOMC induced rally. The SOX gained a further 1.5%, its fifth straight gain, while the MSCI IT rose 0.96%.
• To recap, the Kospi fell nearly 1% yesterday, negative spill over from China losses not helping sentiment. Offshore investors sold -$147.1mn of local shares.
• The local data calendar is quiet until late next week.
• Elsewhere, the authorities have extended the deadline for onshore FX trading applications to March next year (see this BBG link).