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Won Firms Ahead Of Local Holiday, FOMC Rate Decision

KRW

Spot USD/KRW dropped at the re-open and last trades -7.60 figs at KRW1,260.30. Should the rate descend past Apr 29 low of KRW1,255.25, bears could take aim at Mar 15 high of KRW1,244.00, a previous breakout point. Bulls look for a jump above Apr 28 high of KRW1,273.95 before targeting Mar 23, 2020 high of KRW1,282.60.

  • USD/KRW 1-month NDF last seen at KRW1,260.50, a touch lower on the day. Bears keep an eye on Apr 29 low of KRW1,254.92, while bulls look to a move through Apr 28 high of KRW1,277.09.
  • BoK Apr MonPol meeting minutes released Tuesday showed that board members saw the need for further rate hikes as the current policy settings are still "accommodative".
  • With the local data docket virtually empty today, focus moves to a confirmation hearing from Defence Min nominee Lee and an economic meeting with FinMin Hong.
  • Reminder that South Korean markets will be closed in observance of a public holiday on Thursday.

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