Won Finds Poise On Better Sentiment

Spot USD/KRW dropped to its lowest point in a week in early trade as the greenback fell out of favour. The pair last deals at KRW1,306.15, down 7.35 figs on the day. Bears eye Jul 1 low/50-DMA at KRW1,287.50/1,284.17 for initial support, while bulls look to a rally towards Jul 15 cycle high of KRW1,326.65.

• USD/KRW 1-month NDF last seen at KRW1,305.88, barely changed on the day. Downside focus falls on the 50-DMA at KRW1,282.43, while bulls keep an eye on Jul 15 cycle high of KRW1,329.02.
• Domestic equity benchmarks have edged higher on a positive lead from Wall Street, with KOSPI last +1.15% & KOSDAQ +1.47%. U.S. equity index futures are also in the green, helped by a late-doors surge in Netflix shares.
• Finance Ministry and the BoK have recently asked the National Pension Service for more active FX hedging when investing abroad, Maeil Business Newspaper reported.
• Worth noting that Finance Ministry will release its monthly economic assessment report this morning.
• Elsewhere, the government will provide an update on measures to contain the resurgence of COVID-19 infections.
• South Korea's trade data for the first 20 days of the month will be published tomorrow, providing the highlight of the local data docket this week.