Won Rebounds But May Struggle For Further Gains Amid Recession Fears

1 month USD/KRW got to a 1325 handle late in NY trade post the FOMC before rebounding back to 1333/34 by the close. This was a 0.54% gain in won terms for Wednesday's session and compares with an onshore spot close of 1338.10 yesterday. The won moved in line with broader USD sentiment post the FOMC.

• The 1 month NDF bottomed out around the simple 200-day MA, which comes in just above 1326.
• The focus today will be on recession concerns, with tech related equities generally falling through Wednesday trade in the US. Losses weren't much larger than the major indices though (SOX off by 1.32%, MSCI IT -0.55%). US futures are lower in the first part of trade today.
• To recap, the Kospi lost close to 1%, with offshore investors selling -$202mn of local shares.
• The authorities (BoK/MoF) have had their usual post FOCM meeting and promise to strengthen monitoring of markets.
• Apr FX reserves printed earlier, coming in at $426.68bn, little changed from March.