1 Month USD/KRW Moves Away From late May Highs, Positive Equity Backdrop Helping

1 month USD/KRW has unwound some of the late May gains in the first part of Monday trade. We were last near 1373, around 0.60% stronger in won terms versus end Friday levels in NY. It is the best performing EM Asia currency in Monday's session so far.

• Sentiment is being aided by a better regional equity tone, along with strong local gains (the Kospi is up nearly 2%).
• Onshore sentiment has been boosted after President Yoon stated an offshore oil and gas discovery would be developed (see this BBG link). Tech related stocks are also higher. Weekend data showed a continued recovery in chip exports, although softness was seen in other segments.
• PMI prints for North East Asia rose, with South Korea seeing the biggest improvement relative to the April outcome.
• For the 1 month NDF, we are still some distance from the 20-day EMA (back near 1365.3). Below that the 50-day rests close to 1360. recent highs were marked around 1385.
• Tomorrow we get May CPI figures.