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

CANADA DATA REACT, DOLLAR-WON
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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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