Onshore KRW reopened after the long......>

KOREAN WON: Onshore KRW reopened after the long weekend in South Korea, with

USD/KRW catching up to the recent risk aversion. The focus has been on

escalating U.S.-China sabre rattling, as well as renewed tensions on the Korean

peninsula. The weekend saw North and South Korea fire shots across the DMZ just

one day after Kim Jong Un reappeared in public. The exchange of gunfire across

the border was the first one since 2014.

- South Korea published below-forecast CPI data for April earlier today.

Inflation almost ground to a halt on a Y/Y basis, printing at +0.1% vs. the

prior +1.0%. Elsewhere, the local Markit M'fing PMI showed an acceleration in

contraction, printing at 41.6 vs. the prior 44.2.

- USD/KRW last trades +8.90 fig. at KRW1,227.40. A rally above Apr 21/2 highs of

KRW1,240.90/1,242.55 would give bulls the upper hand. Meanwhile, bears need a

pullback under the 50-DMA/Apr 29 low at KRW1,221.11/1,216.95 before targeting

Apr 10/Mar 27 lows of KRW1,206.90/1,205.20.

- Looking ahead, South Korea releases its BoP data on Thursday.