Erosion In Broader Omicron Worry Outweighs Worsening Domestic Covid Situation

The won has appreciated today, owing to a dissipation in broader Omicron worry, even as domestic Covid-19 situation sparks concerns.

• Spot USD/KRW trades -3.70 figs at KRW1,176.00. Bears look for a break below its 100-DMA at KRW1,171.26, which would clear the way to Oct 26 low of KRW1,164.05. Bulls need a move through Dec 6 high of KRW1,186.95 before targeting Nov 29 high of KRW1,195.70.
• USD/KRW 1-month NDF last seen -1.50 fig at KRW1,176.00. The 100-DMA at KRW1,174.20 provides the initial bearish target, while bulls set their sights on Dec 6 high of KRw1,186.50, followed by Nov 26 high of KRW1,198.18.
• South Korea's Covid-19 situation continues to deteriorate, with daily case count eclipsing 7,000 for the first time since the onset of the pandemic. Critical cases reached another record high, while PM Kim noted that officials are working to add hospital beds in the capital area.
• FinMin Hong foreshadowed that the 2022 economic policy will revolve around supporting small merchants hit by the pandemic and boosting economic recovery. He added that the gov't will also focus on taming inflation and curbing household debt.
• During a separate meeting, Hong said that property prices have markedly stabilised thanks to a suite of housing supply, macroprudential and monetary policy measures.