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1 Month USD/KRW Testing Below 1330, Amid Broad Equity Gains, BoK Mins Out Later

KRW

1 month USD/KRW mostly tracked lower post the Asia close on Monday. Broader USD softness, aided by lower US yields helped. Early trends today are for further won gains, with the pair back to the low 1330/high 1329 region. Note onshore spot is back under 1332, around 0.30% stronger in won terms for the session so far.

  • Broader 1 month USD/KRW ranges remain intact though. The 20-day EMA doesn't come in until the 1325 region.
  • Local equity sentiment has started Tuesday trade positively. The Kospi up 1%, although we have pared gains slightly now. This follows firm tech related gains in US trade, with both the SOX and MSCI IT up around 1% for Monday's session.
  • The real US 10yr yield dipped 7bps (to 1.78%), aiding sentiment in this space and also curbing USD gains.
  • The local data calendar has Dec retail sales/department store sales out today, which are not typically a market mover.
  • Note later on we get the BoK minutes of the Jan policy meeting.

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