DOLLAR-WON: KRW's initial post-trade war "truce" &...>

DOLLAR-WON: KRW's initial post-trade war "truce" & Trump-Kim meeting strength

was reversed yesterday, as softer than expected import data and news that Japan

is to slap restrictions on tech exports to South Korea saw the KRW move back

from best levels yesterday. A move that has extended at today's re-open, with

USD/KRW spiking as high as KRW1,171.80, before settling back to ~KRW1,163.50 at

writing, 5 figures or so higher on the day.

- The technical gap from the April 24 close was briefly filled yesterday as the

rate had a look below KRW1,150, but the move was short lived. Bears will look

for a close below a cluster of support which includes uptrend support drawn from

the YtD low at KRW1,151 today, the 50.0% retracement of the YtD range at

KRW1150.73, KRW1,150 itself and yesterday's low at KRW 1,148.90.

- Bulls will be encouraged by the rejection below KRW1,150 and the close above

uptrend support, which keeps them in control. They initially target the June 20

high at KRW1,173.75.

- Also worth highlighting that CPI data for June revealed a very minor uptick in

core inflation, to 0.9% Y/Y, from the 0.8% seen in May.