1 Month USD/KRW Gets Above 1356 Before Retracing, BOK Expected To Remain On Hold

1 month USD/KRW got above 1356 in NY trade, but settled back near 1353 by the close. This was a 0.15% loss for the won. Dips in the pair back to the 1345/46 region have been supported in recent sessions. Note the 20-day EMA comes in around this level (1345.55). On the topside, October 4 highs near 1362 remain intact. Onshore spot finished yesterday at 1349.60.

• The main focus today will be on the BoK decision. The broad sell-side consensus and our own bias is firmly for no change. The focus is likely to rest with the BOK's tone, particularly in light of the rebound in headline inflation pressures. We still expect the central bank to leave the door ajar for a further rate hike (see our full preview here).
• Outside of the BOK broader risk tones will be driving the won. In the equity space, broader sentiment was softer in US and EU markets through Wednesday. Broader risk aversion ticked higher on Middle East tensions.
• The SOX index finished down by 1.76%, while the MSCI IT fell by 1.30%. To recap, the Kospi finished a touch higher yesterday, while offshore investors added +$177.1mn to local shares. This brings week to date flows to $254.2mn.