Won Weakens As Markets Await Budget Clarification

The won has weakened early on in Asia, USD/KRW last up 1.95 at 1112.15. A reversal of fortunes saw the won reverse earlier strength and finish lower, the move took USD/KRW outside of last week's range. Resistance is seen at the Feb 10 high at 1113.90, above which 1120 comes into focus, and the 2021 high at 1127.80.

• Earlier in the session data showed consumer confidence rose to 97.4 in February, up from 95.4 previously. Whilst this is a pickup, the figure holding below 100 indicates a contraction. The BOK said consumer sentiment improved as new cases of coronavirus infections slowed down amid hopes for vaccinations
• South Korea's Vice Finance Minister Kim Yongbeom was on the wires, he said the government and regulators were aware of potential risks and would strengthen monitoring of financial markets to combat these risks. Among the risks mentioned were rising yields and higher inflation. He also noted the risks from increased liquidity making its way to the property market
• Markets could be treading water until the submission of the latest extra budget proposal next week, the size of the budget is to be decided by Feb 28 with indications of between KRW 12tn and KRW 20tn.