Spot USD/KRW trades on a slightly firmer footing amid broader risk-off feel, fuelled by a North Korean missile test & downbeat comments from Chinese Premier Li re: domestic labour market. The rate last deals +1.10 fig. at KRW1,274.40, with bulls looking to further gains past Mar 23, 2020 high of KRW1,282.60. Bears would be pleased by a retreat under Apr 29 low of KRW1,255.25, towards the 50-DMA at KRW1,230.71.
- USD/KRW 1-month NDF last seen +4.63 figs at KRW1,274.93. The nearby Apr 28 high of KRW1,277.09 provides the initial bullish target. Conversely, bears look for a fall through May 4 low of KRW1,250.96.
- North Korea conducted a test of a submarine-launched missile over the weekend, but refrained from issuing a usual statement on the matter. The latest drill came just ahead of the inauguration of President-elect Yoon, who is preparing to take office on Tuesday.
- Local data highlights this week include BoP current account balance (Tuesday), unemployment (Wednesday) and terms of trade (Friday).