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Won Under Pressure After Powell Comments

KRW

Overnight hawkish comments from Fed Chair Powell have generated demand for spot USD/KRW as onshore markets re-opened in South Korea. The rate sits +6.60 figs at KRW1,222.95, with bulls looking for a rally above Mar 15 high of KRW1,244.00. Conversely, a sell-off past Mar 18 low/50-DMA at KRW1,207.00/1,204.28 would allow bears to breathe a sigh of relief.

  • USD/KRW 1-month NDF last +2.89 figs at KRW1,222.95. Topside focus falls on Mar 15 high of KRW1,247.94, while bears keep an eye on Mar 18/50-DMA at KRW1,207.60/1,205.87.
  • President-elect Yoon pledged to remove all institutional barriers to business, expressing support for the dominant role of the private sector. Yoon made the remarks during a meeting with major business representatives, asking them to provide feedback on what such obstacles might be.
  • Monthly PPI report (Wednesday) provides the highlight of the local data docket during the remainder of this week.

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