1 Month USD/KRW Touches 1320 Before Selling Interest Emerges

1 month USD/KRW briefly got above 1320 in offshore trading, before finding selling interest. Tech equity indices moving off their session lows helped sentiment, while also note the 200-day MA for the 1 month comes in at 1323. Gains beyond this level have not been sustained in recent weeks, so this could offer some resistance. Note onshore spot finished yesterday at 1303.80.

• There is no local data out, but focus is likely to rest on President Yoon's trip to Japan. This is the first since 2019, for a South Korean President, as both countries aim to improve relations amid a more heightened security environment.
• North Korea test fired a long range ballistic missile this morning, (see this link for more details), likely an ICBM. President Yoon's trip, along with on-going US-South Korea military exercises, which stretch into next week, suggests further North Korea tests can't be ruled out.
• The South Korea authorities are also reportedly considering introducing a stress capital buffer for banks. This no doubt comes after the recent turmoil in the global banking in the wake of the SVB collapse.
• To recap, the Kospi rose 1.31% yesterday (with offshore investors adding $214.9mn to locla shares).