Consumer Sentiment improves, Gov't To Draw Up New Relief Measures

Spot USD/KRW has ticked away from its initial highs and last sits +2.95 figs at KRW1,188.10, as positive domestic data has partly offset the impact of overnight demand for the greenback inspired by the renomination of Fed Chair Powell. Bears look for further losses past the 50-DMA at KRW1,179.75 towards Nov 16 low of KRW1,175.50. Conversely, bulls look to a move through Oct 12 cycle high of KRW1,200.35.

• USD/KRW 1-month NDF last seen -2.26 figs at KRW1,189.10. Bears keep an eye on the 50-DMA at KRW1,182.82, while bulls look for a clearance of Oct 12 high of KRW1,201.63.
• FinMin Hong announced that the gov't will prepare KRW12.7tn worth of support measures for small merchants and vulnerable individuals. The gov't will also use KRW2.5tn in excess tax revenue to reduce bond sales to stabilise the bond market. In addition, they will extend consumption tax cuts on car purchases by 6 months.
• The BoK's Composite Consumer Confidence Index rose to 107.6 this month from 106.8 recorded in October, with readings above 100 indicating net optimism. Inflation expectation for the year ahead rose to +2.7% Y/Y from +2.4%.
• We will see an update on sentiment among businesses tomorrow, when the BoK release their Business Survey for the month of November.
• The central bank will then deliver their monetary policy decision on Thursday. Analysts surveyed by Bloomberg are unanimous in expecting policymakers to hike the key interest rate by 25bp.