BoK To Announce Their First MonPol Decision Of 2022 Friday

Spot USD/KRW tested its 50-DMA after a softer re-open, with offshore market impetus driving initial price action. The rate has trimmed losses since and last changes hands -2.10 figs at KRW1,188.45, with bears looking for a clean break of the aforementioned moving average, followed by the 100-DMA at KRW1,180.60. The initial bullish target is provided by Jan 7 high of KRW1,203.90.

• USD/KRW 1-month NDF last seen +2.18 figs at KRW1,189.30, topside focus falls on Jan 6 high of KRW1,207.50. On the downside, a clean break below the 50-DMA at KRW1,187.28 would open up the 100-DMA at KRW1,182.41.
• Majority of analysts surveyed by BBG expect the BoK to raise their benchmark policy rate by 25bp come the end of tomorrow's meeting, albeit a non-negligible minority expect the central bank to stand pat.
• For those following inter-Korean tensions, Yonhap sources said that South Korea and the U.S. are considering postponing their joint military exercise until April, owing to the March 9 presidential election in South Korea.
• Note that President Moon has asked the government to use excess tax revenue for support measures targeting small merchants hit by the pandemic.