USD/KRW Tracks Familiar Ranges, Q2 GDP On Tap Today

1 month USD/KRW spent the post Asia close range bound. Offers were present above 1312 but we couldn’t move below 1308. We closed around 1310, slightly underperforming higher beta FX. This likely reflected some softness in tech equities overnight. Support still appears evident ahead of 1306 on the downside. Note onshore spot closed at 1313.45 yesterday.

• The SOX index dipped (-0.61%) along with the MSCI IT (-0.70%) index, as broader tech underperformed on continued global growth fears.
• To recap, the Kospi outperformed broader regional equity sentiment yesterday, up 0.44%. This helped the won outperform during yesterday's session, but it wasn't maintained into the close. Offshore investors added a modest $18.3mn to local shares yesterday.
• On the data front, the focus will be on today's Q2 GDP print, due out shortly. 0.4% is expected for QoQ versus 0.6% previously. 2.6% is forecast for YoY growth, from 3.0% last quarter.
• Yesterday, the BoK also noted in a research paper that high inflation may get entrenched in a wage-price spiral. Wages tend to react to inflation shocks, while an aggressive policy response is needed to keep inflation in check. This is arguably already in line with BoK's view, although the paper doesn't reflect official viewpoints from the central bank.