Concern over the rapidly deteriorating...>

KOREAN WON: Concern over the rapidly deteriorating condition of the Sino-U.S.

relationship pushed USD/KRW higher at the re-open of the onshore trade. Spot

last sits +3.55 fig. at KRW1,237.90.

- South Korea's FinMin Hong said that the gov't will create a KRW500bn fund to

provide loans to auto part producers, which suffered from the Covid-19 outbreak.

- Meanwhile, continued spread of the infection among people linked to a

logistics centre in Bucheon provides a source of worry.

- On the geopolitical front, the UK has temporarily suspended its embassy in

North Korea, but per an earlier Voice of America report it seems to be motivated

by travel restrictions & follows similar moves by Germany, France & Switzerland.

- A clearance of May 25 high of KRW1,244.25 would be a wind in bullish sails,

opening up Mar 24 low of KRW1,249.65. Bears focus on the 50-DMA/yesterday's low

at KRW1,230.10/1,229.50, followed by May 19 low of KRW1,221.25.

- The BoK delivers its monetary policy decision today. As a recap, most of the

economists surveyed by BBG call for a 25bp cut to the benchmark interest rate,

which would bring it to a new record low of 0.50%.