KRW was one of the poorest performers....>

KOREAN WON: KRW was one of the poorest performers across Asian FX Monday,

finishing the session at 1,158.70 despite a very positive start to the session.

USD/KRW opened below the 100-dma at 1,152.23 for the first time since March as

the firmer CNY and positive trade news helped buoy Asian FX across the board.

The move was short-lived, however, as several PMI releases came in well below

forecast. South Korean manufacturing PMI fell to 47.5, the lowest reading since

February's 47.2, which underpinned Q1's dismal GDP reading of -0.3%.

-USD/KRW bulls appear to have found some support at the 100-dma, with 1160.13

resistance and the 50-dma next up at 1173.94. Since the onshore KRW close, KRW

offshore NDFs have edged higher still, rising to touch the best levels since

June 21st.

-The USD/KRW vol term structure continues to steepen, with short-term tenors

falling at the fastest pace. Options markets were particularly busy, with

turnover close to twice the daily average. The larger options trades crossing

were mainly geared for further upside, with call strikes layered between 1,165 -

1,175 proving particularly popular.