KRW was the best performing currency.....>

KOREAN WON: KRW was the best performing currency in Asia Monday, rising against

all others and kitting the best levels since early May against the USD. The KRW

shrugged off poor manufacturing PMI numbers as well as a poor set of trade

numbers over the weekend (exports slipped 9.4% in May, well below expectations

of a fall of 6.6%). Some wires are citing the better-than-expected Chinese

Caixin manufacturing PMI behind the move, although the beat on expectations was

insignificant. Support may be eyed on an approach into the 1,170.86 level,

marking today's lower 2% Bollinger Band.

-Others have eyed South Korean exporters USD sales behind the move, which may

shift attention to the Tuesday open to see if the move is reversed and recent

cycle highs of 1,196.50 come into play. Nonetheless, markets will be wary of

another move toward 1,200 after finance ministry officials and the Bank of Korea

verbally intervened on approach.

-South Korean GDP revisions are due for release Tuesday (the flash print was the

original catalyst for the KRW sell-off) but are expected unrevised at -0.3% Q/Q

and 1.8% Y/Y.