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Despite posting a higher open, USD/KRW...>

KOREAN WON
KOREAN WON: Despite posting a higher open, USD/KRW has drifted south and now
trades at KRW1,171.75, near Friday's close. It kicked off on a firmer note as
participants digested news flow re: U.S.-China trade matters & North Korea. Lack
of clarity in phase-one U.S.-China trade pact has limited risk appetite,
provoking a reaction in the won. In addition, the currency has been weighed on
by the weekend announcement from Pyongyang state media about a successful
"crucial" test-launch of missiles. However, KRW has then recovered thanks to
some positive surprises in China's econ activity data, a stronger than exp. PBoC
fix & talks between snr Japanese & S. Korean off'ls on a bilateral trade spat.
- Recovery has prevented the rate from correcting Friday's spectacular drop,
registered on the back of U.S.-China trade headlines & UK election results, both
of which supported risk appetite. Bulls continue to look for a firm push above
the 200-/50-DMAs at KRW1,174.29/1,176.31 towards Thursday's low of KRW1,185.55.
A break above the latter lvl is needed to fill a key gap. Bears need a dip below
Friday's low of KRW1,168.80, which would open up the Nov 18 low of KRW1,162.45.
- S. Korean FinMin released steps on surging home prices, may do more in 1H20.

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