Won Reverses Yesterday's Gains

The won is weaker, reversing all of yesterday's gains at the open. USD/KRW last up 3.00 at 1113.40. The gains yesterday came despite a stronger greenback, as GDP data rose above estimates and showed the economy had surpassed its pre-pandemic peak. Further gains in the greenback on Tuesday put pressure on the won.

• In a worrying sign South Korea reported 775 daily new coronavirus cases in the past 24 hours, the highest in four days and nearing 800, and the proportion of untraceable infections hit the highest point ever amid concerns of another wave of the pandemic. The current social distancing level will be effective until May 2, while private gatherings of five or more people are banned nationwide
• Data earlier in the session was positive though, consumer confidence rose to 102.2 in April from 100.5 in March, the second month of positive sentiment and the fourth month on an upward trajectory. Household sentiment drove the increase, while views on the economy and income also improved. The print follows robust GDP data earlier this week, many private sector economists have now revised up estimates for growth, including Citibank who now forecast 3.6% growth, a 0.3ppt increase, and JP Morgan who upgraded forecasts 0.5ppts to 4.6%.