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After breaking back up through a.........>

KOREAN WON
KOREAN WON: After breaking back up through a number of key resistance levels
yesterday, USDKRW remains on the front foot today, with 21 and 55-dmas acting as
support. The pair trades at 1123.7, with bulls looking to rally above the Aug 24
peak at 1126.0 to target the ytd highs seen on Aug 14 at 1138.6.
- The technical picture is beginning to align with the bearish fundamental
picture for the won, which is beset by the continued decline in rate
expectations. 2-year swaps now sit at just 1.8375% as markets see the BOK as
highly unlikely to embark on a steep hiking cycle. 
- Based on historical correlations between USDKRW and US-Korea real yield
spreads, the pair should be trading roughly 10% higher. 

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