Unemployment Rate Holds Steady, Providing Surprise Ahead Of BoK Meeting

Spot USD/KRW has retreated after the release of weaker than expected U.S. core CPI and better than anticipated South Korean jobs data. The rate last sits -6.20 figs at KRW1,230.00, with bears looking for further losses towards the 50-DMA, which intersects at KRW1,212.47. Conversely, bulls look for a break above yesterday's high of Apr 12 high of KRW1,238.10 before targeting Mar 15 high of KRW1,244.00.

• USD/KRW 1-month NDF last seen at KRW1,229.65, a touch higher on the day. A clearance of yesterday's high of KRW1,238.60 would bring Mar 15 high of KRW1,247.94 into play. Conversely, bears set their sights on the 50-DMA at KRW1,213.65.
• South Korea's unemployment rate held at 2.7% in March in defiance of market expectations. The median estimate in Bloomberg survey of analysts was 3.0%, while nobody forecast anything lower than 2.7%. No change in the jobless rate was even more optimistic, if one accounts for the fact that the participation rate rose to 63.3% from 62.7%.
• Analysts are evenly divided on whether the BoK will raise the benchmark policy rate on Thursday. Policymakers will hold their meeting without the nominated new Governor who still awaits parliamentary confirmation hearing.
• Worth noting that according to Yonhap sources, President-elect Yoon is expected to name at least seven members of his Cabinet today, including his chief of staff.