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USD/KRW Seeing Support Ahead Of 1320

KRW

1 month USD/KRW was range bound post the Asia close yesterday. The rough range was 1324/1330, although we closed towards the lower end of this range. On the downside is the 200-day EMA at 1319, with breaks below this support level not proving sustainable through mid-November. Note onshore spot ended yesterday's session at 1326.70.

  • The data calendar is empty until tomorrow's Q3 GDP revisions, although there will be more focus on Friday's November export figures.
  • Earlier, IP figures for October showed a sharper than expected fall and a noticeable pull back in capacity utilization rates.
  • The other focus point will on-going domestic strikes. Truck drivers continue to strike despite the government's return to work order yesterday. Talks are continuing. Metro rail workers in Seoul have also gone on strike, while the Korean Railways Workers' Union is planning a nationwide strike from December 2.
  • In the equity space, the tech leads are once again negative for the Kospi but this didn't impact sentiment yesterday. To recap, the Kospi gained 1.04%, while offshore investors added $135.8mn to local stocks. The market took a great lead from China equity trends.

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