Spot USD/KRW Holds Near 1340, But Sub Recent Highs, August CPI Due Shortly

Spot USD/KRW ended extended Monday trade at 1338.35, which was close to end Friday levels for the pair. The 1 month NDF finished up at 1335.74, a modest loss in won terms, but off earlier Monday highs.

• For spot focus is likely to rest on any test back above the 1340 level, which weren't sustained on Monday. A move above this level could see the 20-day EMA resistance point tested, which comes in near 1347 (August 22 highs rest near 1344 before this point).
• USD/KRW likely saw some negative spill over from yen losses on Monday, although didn't rally to fresh highs like USD/JPY did. Equity sentiment was mostly positive in EU markets (with US markets out for the Labor day holiday). US equity futures sit close to flat in early Tuesday trade.
• To recap, the Kospi rose 0.25% in Monday trade, while offshore investors added $138mn to local equities, after being net sellers through the tail end of August.
• Coming up shortly we have the August CPI, an important input for the BOK outlook. The market expects headline at 0.4%m/m (prior 0.3%), while headline y/y is forecast at 2.1% (prior 2.6%). Core is forecast at 2.1%y/y, prior 2.2%.