Coronavirus Cases Jump

The won slightly is stronger in early trade, USD/KRW down 0.65 at 1121.40. The pair is now back sandwiched between its 50-DMA at 1123.48 and the 100-DMA at 1116.71.

• On the coronavirus front daily new coronavirus cases sharply bounced back to a nearly two-week high Wednesday as sporadic cluster infections, along with more transmissible variant cases, continued to pop up across the country. There were 707 new cases reported in the past 24 hours. The health authorities said those who are vaccinated will be partly exempted from wearing masks and other virus restrictions in an effort to encourage more people to get COVID-19 jabs. Around 3.9m people, or 7.7% of the population, have had their first jab.
• Data earlier in the session showed manufacturers business confidence fell to 97 in June from 98 in May. Non-manufacturers confidence fell to 81 from 82 in May. Domestic demand would seem to have picked up, the proportion of companies complaining about weak demand fell to 11.7% from 11.8% previously.
• Data late yesterday showed household credit grew at a slower pace in the first quarter, as banks tightened rules on loans. Household credit reached a record high of KRW 1,765tn as of March, up KRW 37.6tn from the previous print. Household debt has been repeatedly cited as a drag on the recovery, as high indebtedness is feared to curb domestic demand and thus crimp economic growth.