USD/KRW Eyeing A 1345/46 Test

Spot USD/KRW has surged at the open, pushing back above 1343. This is around +0.90% above Friday's closing levels. This largely reflects catch up from the moves in the NY session, where the 1 month USD/KRW NDF pushed back above 1340, amidst broad USD strength. The focus today will be on whether we can move above the 1345/46 region.

• The pair has topped out in this region a number of times, as the South Korean authorities have warned against one-sided FX market moves/herd behavior in markets.
• Fresh warnings came this morning from the South Korean Vice Finance Minister, with FX/bond markets to be monitored closely. The regulatory body will also set up a short-selling investigation team this week for stocks.
• The Kospi is down sharply in early trading (off -2.40%), following steep losses in tech related equities on Friday (SOX -5.8%, MSCI IT -4%). Offshore investors added $463.7mn to local equities last week, but we could see somewhat of a reversal in the early part of this week.
• The local data calendar just has retail sales/department store sales on tap (between now and the end of August).