1 Month USD/KRW Rebounds To 1290, First Gain In A Week

1 month USD/KRW saw a strong rebound from the low 1270 region in Asia trading yesterday back to 1290 by the end of the NY session. This was the first gain in the pair in a week. Current levels are around previous lows in the pair from earlier in December, so we could see some selling materialize here. Beyond current levels we have the 20-day EMA at 1307.25. As we approach the holiday period liquidity could obviously be impacted though. Note onshore spot ended yesterday at 1276.

• The local data calendar is empty, while the equity lead for the Kospi is weaker. The SOX slumped 4.2% yesterday, the MSCI IT 2.44%, amid a broader pull-back in equity sentiment.
• To recap, the Kospi rose 1.20% yesterday, while offshore investors added around $60mn to local shares, trimming week to date net outflows to -$160mn.
• Earlier comments from the BoK, around its 2023 policy direction, stated curbing inflation pressures remains the key objective next year.
• Comments from the Vice Finance Minister are also crossing the wires. The South Korean economy is expected to face difficulties in H1 next year, while the government will remain focused on stabilizing price pressures and financial market sentiment.