Won Claws Back Losses After BoK FX Comments

Spot USD/KRW reversed gains as an unnamed BoK official told Yonhap News Agency that a rising FX volatility is not good for the economy and might entail more active measures by the FX authorities, with recent moves suggesting the presence of an excessive one-sided sentiment.

• As the pair erased its earlier gains, Bloomberg circulated comments from a BoK official, who flagged the need to "manage volatility as it seems to be spurring market anxiety and one-sided moves in the FX market."
• Earlier gains for USD/KRW came even as advance Q1 data showed that South Korea's GDP rose 0.3% Q/Q, printing marginally above the +0.2% median estimate. The BoK said they expect an improvement in growth momentum later this year.
• Spot USD/KRW closed -2.45 figs at KRW1,332.40, after refreshing five-month highs at 1,337.20. Bulls look for gains past Nov 22 high of KRW1,362.75. Bears eye the 50-DMA (KRW1,308.56) for initial support.
• USD/KRW 1-month NDF last trades at KRW1,3335.73, up ~4.7 figs on the day. Next resistance seen at Nov 22 high of KRW1,362.35. The initial downside target is the 50-DMA at KRW1,307.65.
• Worth noting that South Korean President Yoon has touched down in the U.S. for a six-day state visit and is set to hold a summit with President Joe Biden on Wednesday.