Won Trims Opening Gains Ahead Of BoK Policy Decision

Spot USD/KRW has recouped some of its opening losses and last deals -1.80 figs at KRW1,225.50. A break above Apr 12 high of KRW1,238.10 would reassure bulls, encouraging them to target Mar 15 high of KRW1,244.00. Bears look for a sell-off below the 50-DMA, which kicks in at KRW1,212.87.

• USD/KRW 1-month NDF last seen +1.57 figs at KRW1,225.65 and topside focus falls on Apr 12 high of KRW1,238.60. Bears would be pleased by a fall through the 50-DMA at KRW1,214.01.
• The sell-side is split when it comes to the prospect of action from the BoK at its April meeting, with those that are calling for a 25bp rate hike nowhere near certain that such a move will come to fruition (11/21 in the BBG survey look for a hike). We are also non-committal, with no meaningful bias in either direction. BoK Senior Deputy Governor Lee has noted that this meeting will be “tricky,” pointing squarely at the combination of higher inflationary risks and downward pressure on economic growth. Click here to see our full preview.
• A U.S. aircraft carrier group entered waters east of the Korean Peninsula for the first time in almost five years amid North Korea's intensified missile drills. Recent press reports have flagged the possibility of a nuclear test being held by Pyongyang in the near future.