USD/KRW Off Cyclical Highs, BoK Expected To Hike By 50bps Today

1 month USD/KRW got to fresh cyclical highs above 1316 late yesterday, but spent much of the post Asia close trending back towards 1305. We closed in NY at 1306, while onshore spot finished yesterday at 1312.25.

• The won benefited from the DXY moving off recent highs, although there weren't too many cross asset positives. The SOX index edged higher in the equity space, but broader tech performance was weaker (MSCI IT down just over 1.3%).
• Yesterday the Kospi fell by close to 1%, the Kosdaq off by 2.12%. Offshore investors sold $152.mn in local shares.
• Earlier, the South Korean unemployment rate edged up to 2.9% from 2.8% last month, which is still very low by historical standards. YoY employment growth eased back to 3.0%, down from early 2022 highs of above 4% but is still well above long run averages.
• US Treasury Secretary Yellen will meet with BoK Governor Rhee on July 19th in Seoul. The global economy/financial market backdrop will form part of the agenda, as will policy coordination.
• For today though, the focus will firmly be on the BoK decision. A 50bps hike is expected. See our preview here for full details. The statement is expected to be released in a little under 2hrs (10:30AM Seoul time), with the press conference to follow at 11:10AM Seoul time.