Won Remains Stable, Officials Ready To Stabilise Bond Markets If Needed

Spot USD/KRW operates marginally above neutral levels, last at KRW1,192.85, as officials pledged readiness to take stabilisation measures if needed. Bulls see Jan 7 high of KRW1,203.90 as their initial target, while bears need a dip through the 50-DMA at KRW1,187.17 before taking aim at KRW1,181.72.

• USD/KRW 1-month NDF last seen at KRW1,193.15, just shy of neutral levels. Bears look for losses past the 100-DMA/Jan 13 low at KRW1,184.32/1,183.78, while bulls would be pleased by a rally past Jan 6 high of KRW1,207.50.
• Vice FinMin Ahn Do-geol said South Korea stands ready to take all available measures to stabilise bond markets in coordination with the BoK if there is excessive volatility.
• South Korea's exports rose 22.0% Y/Y in the first 20 days of the month, while average daily shipments grew 18.0% Y/Y, suggesting that the global demand holds firm despite the outbreak of Omicron.
• Worth noting that a local FX panel will discuss ways to "effectively ease" rules on offshore won trading flagged by foreign investors when officials meet on Monday.
• The Cabinet gave a nod to a KRW14tn extra budget to support small merchants affected by the pandemic. It will be submitted to parliament next Monday for final approval.