1 Month USD/KRW Off Highs, As Tech Equities Rebound

1 month USD/KRW got to 1279 late in the Asia session, but pulled back from there, getting back to 1271/72 by around the NY close. The better tone to equities, particularly in the tech space, helped pull the pair lower. Note onshore spot ended yesterday at 1277.50 so we should see an early firmer impetus for the onshore won.

• In terms of technicals, the 50-day EMA sits back near 1268, but it may require a move back below the 20-day EMA (1250.30) to re-establish a more favorable won backdrop. On the topside, the 100 and 200 day EMAs sit between 1292/1295.
• The SOX rebounded 1.53% in Monday trade, the MSCI IT rose by the same amount, the first gain for this index in 4 sessions. To recap, the Kospi fell 0.69% yesterday, but offshore investors still added $117.3mn to local shares.
• The local data calendar just has Dec money supply figures on tap, which is unlikely to move sentiment.
• The other focus point could rest on President Yoon's calls for relief for people suffering from high interest rates. He stated banks should share profits with people who face difficulties according to local media reports (see this link for more details). Headlines on the issue crossed yesterday.