Won Steady With All Eyes On BoK

The Korean won holds a tight range ahead of the monetary policy announcement from the BoK. A majority of 14 out of 19 economists surveyed by Bloomberg expect policymakers to raise the benchmark interest rate by 25bp today, with the remaining 5 analysts forecasting a stand-pat decision. We concur with the consensus view, more colour can be found in our usual preview.

• PM Kim announced that the gov't is raising the cap on private gathering size to 6 people but keeps a 9pm curfew on restaurants and cafes.
• Elsewhere, the Premier noted that the gov't is planning to submit an extra budget to parliament before LNY holidays to help small businesses.
• Meanwhile, North Korea lashed out at the sanctions imposed by the U.S. in reaction to Pyongyang's latest hypersonic missile tests. The DPRK vowed a "stronger and certain reaction."
• Spot USD/KRW last sits at KRW1,188.25, little changed on the day. The ascending 50-DMA continues to provide a layer of support and a break here is needed to bring the 100-DMA at KRW1,180.71 into play. Conversely, the initial bullish target is provided by Jan 7 high of KRW1,203.90.
• USD/KRW 1-month NDF last seen +1.20 fig at KRW1,188.95, with bulls looking for a break above Jan 6 high of KRW1,207.50. Bears would be pleased by a dip through the 100-DMA at KRW1,182.66 towards Dec 8 low of KRW1,171.75.