KRW has been the big mover in early......>

KOREAN WON: KRW has been the big mover in early Asia-Pacific trade, with

domestic GDP unexpectedly contracting in Q/Q terms, with the metric printing at

the lowest level since 2008 in the process. BoK officials were quick to note

that the latest round of BoK forecasts reflected Q1 GDP, and there is no need to

be too pessimistic on the economy, yet. The latest leg higher comes at a time

when broader USD strength has been evident, adding to the KRW's woes on the back

of lingering effects from the dividend season, the formalisation of the

supplementary budget & the U.S removing the waivers re: sanctions on purchases

of Iranian crude (which South Korea benefitted from).

- There is also talk that an onshore USD shortage in South Korea may be

facilitating the move. Although the country's official FX body recently noted

that the move in overnight FX swaps is a "temporary trend" related to dividend

matters, as opposed to USD liquidity

- USD/KRW last trades at KRW1157.65, 7 points higher on the day, back from early

highs of KRW 1,161.40. Resistance noted at the March 10 2017 high of KRW

1,162.98