DOLLAR-WON: USD/KRW sits KRW6.60 or so lower at......>

DOLLAR-WON: USD/KRW sits KRW6.60 or so lower at writing, last dealing at

KRW1,209.80. The latest developments on the Sino-U.S. trade war front (however

questionable they may be), coupled with stronger than expected local industrial

production data is helping to support KRW in early onshore trade.

- Rate now sits below the 21-DMA of KRW1,210.55, with bears now focused on the

August 05 low at KRW1,201.97 ahead of the psychological KRW1,200.00 level. Bulls

look for a quick retake of the aforementioned 21-DMA to keep focus on the recent

highs.

- The BoK will issue its latest MonPol decision in around 30 minutes time. Most

expect that the BoK will leave its key interest rate unchanged at 1.50%, with

only 3 of the 25 surveyed by BBG looking for a 25bp cut. As a reminder, last

month saw the Bank deliver a 25bp cut. The Bank's view on the increased

headwinds from the Sino-U.S. & Japan-South Korea trade spats since it last

convened and the government's recently announced fiscal package will provide key

points of reference in the communique.