1 Month USD/KRW Consolidates In 1335/1340 Range, Household Lending Data Out Today

1 month USD/KRW was range bound post the Asia close on Wednesday, largely oscillating between the 1335/1340 region. We closed in NY at 1337.75, a won gain of 0.23%. Note onshore spot finished yesterday at 1338.80.

• A continued move lower in USD/KRW leaves late September lows sub 1330 in focus. On the topside, note the 20-day EMA comes in near 1341.
• On the data front today we have September bank lending to households data, not typically a market mover, but in is under renewed focus given the uptick in lending/rising house prices. Onshore new wires reports (Yonhap) that local banks are raising lending rates to curb lending (see this link ).
• BOK Governor Rhee highlighted hopes for improvement in the semiconductor outlook into 2024. The Governor also expects inflation to slow towards 3% by year-end (see this BBG link for more details).
• In the equity space, the lead for South Korean shares remains positive. The MSCI IT index rose for the 6th straight session on Wednesday (+0.86%), while the SOX gained 0.73% (US real 10yr yields fell a further 8bps to 2.26% (10yr)). To recap, the Kospi rose nearly 2% yesterday (post the Samsung earnings beat), while offshore investors added a modest $47.1mn to local shares.