Risk Reprieve Allows Won To Breathe Sigh Of Relief

Spot USD/KRW has lost some altitude on the back of recovery in risk appetite, as the U.S. said its chief diplomat Blinken will meet with his Russian counterpart Lavrov next week. The rate operates -1.00 fig. at KRW1,196.20, with bears looking for a dip through Feb 10 low/50-DMA at KRW1,193.50/1,192.18 before targeting the 100-DMA at KRW1,187.22. Bulls need a push through Feb 11 high of KRW1,201.50 before taking aim at Jan 28 high of KRW1,207.25.

• USD/KRW 1-month NDF last -2.11 figs at KRW1,196.91. Bears look for a slide through the 50-DMA at KRW1,194.74, while bulls look to a jump above Jan 28 high of KRW1,214.39.
• PM Kim announced that some Covid-19 rules will be eased from this weekend, despite a spectacular surge in Covid-19 cases, which topped 100,000 today. The curfew on cafes and restaurants will be pushed back to 10pm, but private gathering size limit will be kept at six.
• Elsewhere, Vice FinMin Lee said that the government will consider extending fuel tax cuts beyond April amid continued rise in energy costs.
• Focus turns to preliminary trade data (Monday), consumer confidence (Tuesday), Business Survey (Wednesday) as well as PPI & BoK MonPol decision (Thursday).