China's weak domestic demand to hit South Korean economy

China's trade balance data for November is scheduled to release tomorrow. Analysts expects both the exports and imports to remain sluggish in November, as result of poor domestic as well as external demand. The CPI inflation figure of the country is expected to remain steady in November, but PPI reading may fall down.

The fall in domestic demand in China will weighing on South Korea's exports, and thereby growth rate will be affected. However, the BoK is expected to keep the policy rate unchanged as the U.S. Fed is likely to increase rate at next week meeting.

"The BoK may also release a new inflation target, which we expect to be centered on 2%. We continue to hold onto our long USDKRW 6m NDF initiated in Global FX Quarterly: Fed prepares markets for lift-off, 12 November 2015", states Barclays.