DOLLAR-WON: USD/KRW has rallied as the greenback.....>

DOLLAR-WON: USD/KRW has rallied as the greenback registers gains across the

board on higher U.S. Tsy yields. The pair gapped higher at the open and last

deals at KRW1190.50, 7.45 figures better off.

- To put it mildly, South Korean data prints were less than inspiring. Markit

m'fing PMI showed a higher rate of contraction, allowing for a clean break of

KRW1190.00. And this occurred after the pair gapped higher at the open, as CPI

and trade data knocked KRW on the head. The monthly CPI measure was negative,

while inflation missed forecasts both on a M/M and Y/Y basis. Trade surplus was

significantly thinner than exp., while the prior reading was revised lower.

- BOK Gov Lee noted that South Korean authorities are not defending any specific

USD/KRW level. He also declared that the Bank will take steps if econ conditions

deteriorate. Meanwhile, trade row with Japan continues to spoil the outlook.

- The fact that USD/KRW opened above its upper Bollinger band (2%) at KRW1188.35

and the subsequent breach of KRW1190.00 have pleased bulls, shifting their focus

to the May 22 YtD high of KRW1196.50. Bears look for a pullback below the

KRW1190.00 mark, which would bring yesterday's high of KRW1183.40 into view.