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Won Treads Water, DPRK Confirms ICBM Test

KRW

Spot USD/KRW trades flat at KRW1,218.75 with participants assessing a slew of familiar developments. A break above Mar 22 high of KRW1,223.55 would bring Mar 15 high of KRW1,244.00 into play. Meanwhile, a drop below KRW1,211.05, which limited losses on Mar 23, would shift focus to Mar 18 low/50-DMA at KRW1,207.00/1,205.24.

  • USD/KRW 1-month NDF last -2.69 figs at KRW1,218.91. Bears look for a slide through the 50-DMA, which intersects with Mar 18 low at KRW1,207.60. Bulls look to a rally above Mar 15 high of KRW1,247.94.
  • North Korea confirmed "successful" test-launch of Hwaong-17 ICBM this morning drawing international condemnation. The drill was overseen by Supreme Leader Kim Jong Un and represented the DPRK's first firing of an ICBM since 2017. U.S. Secretary of State Blinken held consultations with his counterparts from Japan and South Korea as the test threatens to escalate already heightened geopolitical tensions in the region. South Korea's President-elect Yoon will discuss the matter with Chinese President Xi later today.
  • Focus turns to consumer confidence (Tuesday), industrial output & BoK Business Survey (Thursday) as well as trade balance & S&P Global M'fing PMI (Friday).

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