1 Month USD/KRW Back Sub 1300, North Korea Missile Tests In Focus

1 month moved away from the 1300 level post the Asia close, finishing the NY session around the 1294.50 level. This followed broader USD softness into the weekend. Note onshore spot ended Friday's session at 1299.65, so the early impetus in the pair is likely to be to the downside.

• The early focus is also likely to be on renewed North Korea missile tests. South Korea media reported 2 short range ballistic missiles were launched.
• The US, Japan and South Korea held aerial drifts on Sunday after the North Korea ICBM test. South Korea's President will hold a meeting with his Prime Minister after the ICBM test today.
• South Korea's resolve around North Korea appears to have hardened, with the government labelling North Korea an 'enemy' for the first time in 6 years recently.
• Elsewhere the data calendar remains quiet today, while the equity lead is slightly negative for the Kospi (SOX -1.67% on Friday, MSCI IT -1.35%). US futures are also tracking lower in the first part of trade. The Kospi fell close to 1% on Friday, while offshore investors sold -$68.1mn.
• Any follow up on comments around finance ministry concern with excessive volatility/herd behavior in FX markets, which aired on Friday, will also be eyed.