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Won Edges Higher, Domestic Headline Flow Remains Thin

KRW

Spot USD/KRW has ebbed lower and last changes hands -1.40 fig. at KRW1,196.75, with bears looking for a deeper sell-off past the 50-DMA at KRW1,190.44. Should this come to fruition, they could take aim at the 100-DMA at KRW1,185.51. On the flip side, bulls need a breach of Jan 28 cycle high of KRW1,207.25 to confirm that broader topside momentum remains intact.

  • USD/KRW 1-month NDF last seen at KRW1,197.50, barely changed on the day. Bears keep an eye on the 50-DMA at KRW1,192.03, while bulls look to a jump above Jan 28 high of KRW1,214.39.
  • Seoul will hold consultations with the U.S. and Japan to look into "creative" ways of engaging with North Korea. Foreign Ministers from the three nations will meet on Saturday, following a barrage of Pyongyang's missile tests conducted earlier this year.
  • South Korea's BoP current account balance is due Thursday.

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