UISD/KRW 1 Month Holding Sub 1280, Q2 GDP On Tap Today

1 month USD/KRW got back close to 1275 in NY trade on Monday, before won gains were pared into the close. We finished up at 1278.75 in NY, still a won gain of 0.61% versus closing levels from last Friday. Onshore spot finished the Monday session at 1279.85. Early spot highs were in the 1288/89 region, so a decent pull back, although we remain some distance from recent lows sub 1260.

• The won benefited from the pull back in USD/CNH post the Politburo headlines. In the equity space, major US indices moved modestly higher, while tech related indices were mixed in Monday trade (SOX -0.18%, MSCI IT +0.18%).
• To recap the Kospi outperformed yesterday amid better earnings, the index up 0.72%. Offshore investors sold -$50.8mn local shares for the session, but outflows were much larger earlier in the day.
• Today we have Q2 GDP on tap. The market expects +0.5% q/q, versus 0.3% prior, while in y/y terms, growth is forecast at 0.8% (against 0.9% in Q1).
• Elsewhere, North Korea fired another ballistic missile into waters off its east coast. This follows similar a launch on Saturday and comes ahead of the 70th anniversary of the Korean War Armistice.