Won Goes Offered Amid Signs Of Preparations For North Korean ICBM Test, Rapid Omicron Spread

Spot USD/KRW leapt higher this morning, testing the KRW1,240.00 figure while lodging fresh cycle highs. The rate last sits +7.05 figs at KRW1,238.75, with bulls setting their sights on May 25, 2020 high of KRW1,244.25. Bears need a pullback under Mar 10 low of KRW1,225.30 before targeting Jan 28 high of KRW1,207.25.

• USD/KRW 1-month NDF last +1.74 fig at KRW1,239.65. Topside focus falls on May 25, 2020 high of KRW1,244.46, while bears look for a fall through Mar 9 low of KRW1,223.75.
• Yonhap ran a source report noting that "South Korea and the U.S. have detected signs that North Korea is preparing to conduct another intercontinental ballistic missile (ICBM) system test as early as this week." One source told the news agency that "we can't say definitively when a missile will be launched."
• Omicron cases continue to soar, with more than 300k new infections reported today. The daily case count eased from the previous day's ~350k, likely on the back of fewer tests being processed over the weekend.
• President-elect Yoon Suk-yeol's spokesperson pushed back against an earlier Chosun Ilbo report suggesting that PM Kim could keep his post, noting that "there has been no discussion about retaining him as prime minister."
• Looking ahead, South Korea's jobs data will be published this coming Wednesday.