Local Markets Closed, But Trade Data Still Out

1 month USD/KRW ended the NY session close to 1243, having spent the post-Asia close grinding higher. While onshore markets are closed today, trade figures for May will still be in focus. Support for 1 month USD/KRW is evident ahead of the 1235 level.

• The market expects an improvement in the export growth trend, after trending down for the past 2 months. The YoY print is expected at 18.4% versus 12.9% previously.
• A rebound in Shanghai container traffic, which likely aided yesterday's better than expected China manufacturing PMI print, is a possible support for Korea's external demand in May.
• Imports are expected to rise 31.4% YoY, which sees the trade deficit at -$2500mn, little changed from the previous month.
• The other focus point will be a host of local elections held in South Korea, which is why onshore markets are closed today.
• New President Yoon Suk Yeol's conservative party is expected to do well in the mayoral elections in the major cities of Seoul and Busan according to latest polling, which could help push his policy agenda.