Whipsaw

Spot USD/KRW re-opened on a softer footing, but crept higher thereafter, topping out at KRW1,147.50, driven by U.S. election bets. The rate has eased of highs since, amid the tech-driven equity rally outlined before, and last trades +3.75 fig. at KRW1,137.90.

• Election jitters have moved the rate within a fairly wide range today. Bulls need a resumption of gains that would result in a clearance of Oct 13 high of KRW1,151.45. This would bring the 50-DMA at KRW1,162.76 into play. Bears look for a retreat under Oct 27 low of KRW1,125.00 before taking aim at Feb 27, 2019 low of KRW1,115.40.
• South Korean military raised alert after capturing a North Korean citizen, potentially a defector, trying to cross the border.
• South Korea reported 118 new Covid-19 cases today, as the daily tally returned above 100.
• As a reminder, BoK Gov Lee said that the Bank will hold a meeting at 17:00 local time today to review the impact of the U.S. elections.
• Looking ahead, South Korea reports BoP current account balance for the month of Sep tomorrow.