Won Closed Lower Yesterday Despite GDP Beat

Won is expected to gain today with USD weaker across the board on hopes of a global economic recovery as the IMF increased its outlook for world growth in 2021 from 5.2% to 5.5%. USD/KRW gained yesterday, closing at 1106.45 as USD caught a bid in Asia. The losses for the won came even as GDP figures beat estimates.

• Earlier in the session today January Consumer Confidence figures were released earlier, rising to 95.4 from a revised 91.2 previously but still in contractionary territory. The BOK said consumer sentiment improved as new cases of coronavirus infections slowed down amid expectations for vaccinations.
• Elsewhere Samsung plans KRW 24t capex for memory chips, a 20% Y/Y rise, and KRW 11t for foundry according to reports today.
• Meanwhile several foreign investment banks have revised up their forecasts for South Korea's 2021 growth. Out of six foreign IBs and one research institute that published reports on South Korea yesterday, three upgraded their growth outlooks by 0.1 to 0.3ppts, according to the report by the Korea Center for International Finance.