Won Lower At The Open

The won has weakened at the open, USD/KRW led higher by a stronger greenback after the release of the latest FOMC meeting minutes. The pair last trades at 1119.75, up 3.45 on the session. The rate tested 1115.00 twice yesterday but managed to hold the level, significant support is seen at the 50% retracement of the 2021 move from low to high at 1113.10

• South Korean President Moon's Democratic Party has suffered its worst defeat in five years in two major mayoral elections. Conservative candidate Oh Se-hoon has won in Seoul, while in Busan Park Hyung-jun of the conservative People Power Party came out on top. The results are a troubling sign for Moon less than a year ahead of a presidential vote. Markets will attempt to predict what a change in government could mean for fiscal policy. The popularity of President Moon Jae-in and his party has plummeted to record lows in recent months due to sex abuse scandals, rising house prices and deepening inequality.
• On the coronavirus front South Korea was the latest country to impose conditions on the Astra Zeneca vaccine, it is now barred from use in people under 60. South Korea's drug safety agency on Wednesday approved the COVID-19 vaccine by Johnson & Johnson's Janssen. New cases remain elevated, South Korea reported 668 cases yesterday, the most since early January. Authorities have warned that the country may see the daily caseload of over 600 amid increased spring travel and loosened vigilance against the virus, signaling that enhanced virus curbs may be adopted to stem the further spread of COVID-19, health officials have warned the daily tally could rise over 700 in the coming days. Local authorities plan to release new social distancing guidelines, which will be implemented starting next week.