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USD/KRW gapped higher at the open, but...>

KOREAN WON
KOREAN WON: USD/KRW gapped higher at the open, but has sold off since with the
won supported by solid domestic growth figures. According to preliminary
readings, in Q4 South Korean GDP expansion accelerated to +2.2% Y/Y and +1.2%
Q/Q vs. forecast of +1.9% and +0.7% respectively. Full-year growth averaged at
+2.0% Y/Y, in line with the BoK's projection. Commenting after the release,
South Korean Vice-FinMin Kim anticipated that the country will achieve the +2.4%
Y/Y growth target this year.
- Kim also said that South Korea is ready to respond if market volatility
increases, as he joined the choir of officials from across the region warning
against potential economic impact of China's coronavirus. To recap, virus
worries sent KRW tumbling yesterday.
- The rate last trades -2.35 fig. at KRW1,164.70. Bears look for a fall through
the 21-DMA at KRW1,162.05 towards the Jan 20 low of KRW1,156.15. Bulls keep an
eye on the 50-DMA at KRW1,170.73, which limited gains at the open today.
- As a reminder, South Korean markets will be shut for Lunar New Year holidays
on Jan 24 (Friday) - Jan 27 (Monday).

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