Won Garners Strength Despite North Korea's Apparent Missile Test

The Korean won has looked through regional geopolitical tensions, even as North Korea's apparent missile test has dominated South Korean headlines this morning.

• Japan Coast Guard and South Korean military both said that Pyongyang fired a projectile into the East Sea, in what might have been another test of a ballistic missile.
• South Korea's current account surplus widened to $7.1561bn in Nov from $6.9455bn in the previous month, as the nation reported a surplus for the 19th straight month.
• Participants look ahead to the release of South Korea's labour market data tomorrow and the announcement of the BoK's monetary policy decision on Friday.
• Spot USD/KRW re-opened on a softer footing, despite overnight USD strength. The rate last trades -3.10 figs at KRW1,195.90. Bears look for losses past the 50-DMA at KRW1,185.61, while bulls would be pleased by a bounce above Jan 7 high of KRW1,203.90 towards Jul 14, 2020 high of KRW1,207.75.
• USD/KRW 1-month NDF last seen -2.20 figs at KRW1,196.69. Initial downside focus falls on the 50-DMA at KRW1,187.22. Conversely, bulls look to a clearance of Jan 6 high of KRW1,207.50.