USD/KRW has dived on the back of a.......>

KOREAN WON: USD/KRW has dived on the back of a wider risk-on reaction to the

reports about a successful trial of Moderna's Covid-19 vaccine. The pair trades

-5.30 fig. at KRW1,200.45.

- The won may have drawn some support from the fact that South Korea's

unemployment slipped to 4.3% from 4.5% in June, even as median BBG forecast was

for no change. The data comes after the gov't pledged to unleash massive

spending to rescue the economy.

- On Tuesday, President Moon announced that the size of his "New Deal" spending

plan will be doubled to KRW160tn. The plan aims at creating 1.9mn new jobs over

the next five years.

- Bears need a break below the 200-DMA at KRW1,197.00 before taking aim at Jul 7

low of KRW1,189.80. Bulls see yesterday's peak at KRW1,207.75 as their initial

target and a break here would expose the 50-DMA at KRW1,213.80.

- Looking ahead, the BoK delivers its monetary policy decision on Thursday.