USD/KRW Keeps Hovering Just Above Cycle Lows

Spot USD/KRW continues to hover within touching distance from the new cycle low of KRW1,103.05, printed towards the end of last week in defiance of the accelerating spread of Covid-19 infections across South Korea & continued jawboning from local economic officials. That being said, underwhelming South Korean industrial output data may have kept a lid on the won this morning. The rate last sits +1.10 fig. at KRW1,104.50.

• South Korea's industrial output unexpectedly declined 2.2% Y/Y in Oct, even as analysts expected a 0.3% uptick. The M/M fall was shallower than expected.
• Chosun Ilbo reported that South Korea's gov't, ruling party and presidential office are considering up to KRW4tn cash handout for SME owners & mom-and-pop stores hit by the coronavirus pandemic. The handout would be included in the 2021 budget, which could increase to ~KRW558tn from the initially planned ~KRW556tn.
• The gov't kept the greater Seoul area under level 2 restrictions and raised alert level to 1.5 in all other areas, even as the number of new cases registered below 500 on both Sunday and Monday.
• A slide through the aforementioned KRW1,103.05 level would give bears the green light to targeting the psychological KRW1,100.00 level. Below there opens channel floor/lower 3.0% Bollinger band at KRW1,089.93/1,085.90. On the topside, initial focus falls on Nov 20 high of KRW1,116.75.
• All eyes move to the final reading of South Korea's Q3 GDP, as well as trade balance & Markit M'fing PMI, all due tomorrow. On Wednesday, South Korea will publish CPI figures, with the latest update on BoP current account balance coming up Friday.