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Domestic Covid Situation Remains Alarming

KRW

Spot USD/KRW recoiled this morning, catching up with overnight risk-off flows & yuan weakness. The rate last sits +3.55 figs at KRW1,177.75, with bulls looking for gains past Dec 6 high of KRW1,186.95 towards Nov 29 high of KRW1,195.70. Bears need a fall through yesterday's low/100-DMA at KRW1,172.25/1,171.88 before targeting Oct 26 low of KRW1,164.05.

  • USD/KRW 1-month NDF last seen at KRW1,179.39, almost 1 fig higher on the day. A break above Dec 6 high of KRW1,186.50 would open up Nov 26 high of KRW1,198.18. On the flip side, should Dec 8 low of KRW1,171.75 give way, bears could target Oct 26 low of KRW1,165.03.
  • Nothing new on Covid-19 front. Daily cases stayed above 7,000 for the second consecutive day, while critical cases hit another all-time high. South Korea shortened the interval between primary vaccination and the booster jab to three months from five.
  • Participants look ahead to South Korea's terms of trade (Tuesday) & unemployment (Wednesday).

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