Covid Worry Dents KRW

Spot USD/KRW gapped higher at the re-open, as concerns over the resurgence of Covid-19 in South Korea continued to mount over the weekend. The pair last sits +4.30 fig. at KRW1,190.60, off its earlier high of KRW1,192.65.

• Head of Korea Centres for Disease Control and Prevention warned that South Korea is "at the verge of a massive nationwide outbreak", asking citizens to observe social distancing guidelines. KCDC chief added that the government is reviewing the need and technical details of moving restrictions to level 3 (the highest) from the current level 2. Meanwhile, Seoul has already tightened existing restrictions by mandating face masks in indoor and crowded outdoor places.
• Separately, the press cited comments from South Korean officials, who noted that Seoul and Beijing agreed that Chinese Pres Xi will visit South Korea after the coronavirus situation stabilises. Donga reported that Xi's visit is unlikely this year.
• Bulls would be pleased by a break above Aug 3 high of KRW1,196.05, which would allow them to take aim at Jul 24 high of KRW1,203.10. Conversely, bears keep an eye on Aug 19 low of KRW1,180.65, the worst level since early Mar & key near-term support.
• South Korean sentiment gauges headline local data docket this week, with consumer confidence due Tuesday & Business Survey coming up Wednesday. On Thursday, the BoK will deliver its MonPol decision.