1 Month USD/KRW Back Sub 1300 On Firmer Equities

1 month USD/KRW got close to 1305 not long after the Asia close on Friday. Won sentiment recovered from there and we finished the NY session back down at 1293. All the key EMAs remain within the 1290/1300 range. The simple 50-day MA, around 1276/77, remains the focus on the downside, as the pair bounced off this support level last week. Note, onshore spot ended Friday's session at the 1294 level.

• The recovery in won sentiment was driven by a firm equity backdrop, although tech related indices underperformed major US bourse moves. The MSCI IT down 0.11%, while the SOX fell by 1.67%.
• To recap, the Kospi lost -0.39% on Friday, while offshore investors sold -$87.6mn shares, also flows for the week were close to flat.
• The data calendar is light in the first part of this week, with just retail sales potentially out (should be released before the 31st of March). Later on in the week we have consumer confidence and business manufacturing and non-manufacturing sentiment readings.
• Headlines have also crossed this morning of likely ballistic missile tests by North Korea. This continues the recent barrage of missile/weapon tests by North Korea in recent weeks, which has coincided with large scale US-South Korea military exercises. These events haven't impact South Korean asset sentiment though.