Won Weaker Despite Unemployment Drop

After strengthening yesterday the won is weaker in early trade on Wednesday. USD/KRW last up 2.05 at 1131.90. The pair is still some way from its 2021 lows at around 1082, since the return from LNY the rate has finished higher in 15 of the previous 22 sessions. Some of the opening gap from yesterday still hasn't been filled around 11136, above which bulls target yesterday's high of 1138.25. and then the psychological figure of 1140. Bears will target the March 12 low at 1127.65.

• Data earlier in the session showed South Korea's unemployment fell to 4.0% in February, a sharp drop from 5.4% in January which was a 20-year high. There has been a strong turnaround in public employment enabled by a resumption in government job programs, while private sector jobs have struggled on elevated social distancing measures. There has also been improved sentiment among businesses and consumers, helped by robust exports and the start of vaccinations. The finance ministry was positive after the data, saying they expected the improvements to continue.
• Fig.1: South Korea Unemployment Rate

Source: MNI/Bloomberg

• Elsewhere the Seoul metropolitan area will implement more stringent antivirus measures on virus-prone facilities and expand testing on foreign workers at industrial complexes in the area to better contain the coronavirus. The measures will be in place until March 31. South Korea reported 469 more coronavirus cases in the past 24 hours, up from 382 yesterday and back above the 400 threshold. The government have also said they will continue to use the AstraZeneca vaccine, even as several European government's declare a hiatus on its use. South Korean President Moon Jae-in and first lady will get AstraZeneca vaccine on March 23, in plenty of time to attend G-7 summit in June. Over 602,000 people in South Korea have now had the vaccine.