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The won underperforms in Asia and spot USD/KRW trades +3.90 figs at KRW1,190.15 at typing. The area around Nov 22 high of KRW1,191.15 has emerged as a durable layer of resistance. A break here is needed to bring Oct 12 high of KRW1,200.35 into view. Conversely, a fall through the 50-DMA at KRW1,180.59 would open up Nov 16 low of KRW1,175.50.

  • USD/KRW 1-month NDF last seen +1.31 fig at KRW1,191.21. A clearance of Nov 19 high of KRW1,194.68 would expose Oct 12 high of KRw1,201.63. Meanwhile, downside focus falls on the 50-DMA at KRW1,174.85, followed by Nov 9 low of KRW1,174.85.
  • The BoK raised the 7-Day Repo Rate by 25bp to 1.00%, in line with expectations. In accompanying statement, the central bank revised their inflation outlook higher. They now see inflation at +2.3% Y/Y rather than at +2.1% in 2021 and at +2.0% rather than at +1.5% in 2022. The Bank said that CPI inflation will likely significantly exceed +2.0% before pulling back towards that figure next year.
  • South Korea's daily Covid-19 cases returned below 4,000 today after hitting a record high on Wednesday. However, critical cases and deaths reached fresh all-time highs.
  • Worth noting that the ruling Democratic Party's presidential candidate Lee Jae-myung will speak to foreign media this afternoon.