Won Gains Trail Higher Beta G10 Moves, BoK Governor Rhee Speaks Today

1 month USD/KRW pulled back sub 1300 by late NY trade on Tuesday, amid broad USD weakness. We closed at 1298.60, a won gain of 0.24%, so underperforming higher beta plays in the G10 FX space, but close to the BBDXY's loss of 0.31%. Note onshore spot finished yesterday at 1307.85, so the early impetus should be to the downside when onshore markets open later.

• The 1 month NDF remains within well established ranges. Yesterday's break above the 20-EMA (around 1303) couldn't be sustained.
• The local data calendar is empty today, with PPI due early tomorrow, followed by first 20-days trade data for Dec.
• Note that at 2pm local time (0500 BST) the BoK will hold a press conference on 2H inflation target performance. This will include an opening speech by BoK Governor Rhee (BBG). This comes after yesterday's BoK minutes were released, a variety of opinions were given (see this BBG link), although hawkish rhetoric has been tempered somewhat.
• For local equities, the lead from US markets is modestly positive, the SOX up just over 0.50%, the MSCI IT +0.34% for Tuesday's session. To recap, the Kospi was a touch higher yesterday, while offshore investors sold nearly $75mn of local shares.