USD/KRW Trims Gains, South Korean GDP Recovers Faster Than Expected

Spot USD/KRW reacted to yesterday's risk-off flows by gapping higher at the re-open of onshore trade, but has trimmed gains after the release of better than expected South Korean flash Q3 GDP data. It last changes hands +1.90 fig. at KRW1,129.75.

• South Korea is officially out of recession after its economy rebounded 1.9% Q/Q, beating expectations of a 1.3% expansion. FinMin Hong commented that the economy has entered recovery phase and could have grown at a mid-2% level if not for the impact of Covid-19.
• Elsewhere, Vice FinMin Kim said that the exchange rate looks like its moving only according to market sentiment, without any impact from global currencies, adding that the gov't will monitor markets and is ready to take stabilisation steps if needed.
• Per RTRS, Samsung has obtained U.S. licences to continue supplying some panel products to Huawei.
• South Korea's coronavirus case count pulled back below 100, registering at 88 today.
• Bulls look for a resumption of gains and a move past Oct 22 high of KRW1,138.25. This would allow them to set their sights on Oct 13 high of KRW1,151.45. Conversely, a fall through Oct 26 low of KRW1,127.65 would open up Feb 27, 2019 at KRW1,115.40.
• Looking further ahead, local consumer confidence gauge comes out tomorrow, while Business Survey hits the wires on Thursday. Industrial output concludes this week's releases on Friday.