USD/KRW has added 4.2 fig. and last......>

KOREAN WON: USD/KRW has added 4.2 fig. and last deals at KRW1,168.75. Trade war

headlines, more than anything else, continue to drive price action. The rate

gapped higher at the open as markets absorbed yesterday's CNBC report suggesting

that the mood in Beijing towards a trade deal with the U.S. is rather

pessimistic. A lack of any fresh positive signals allowed USD/KRW to show above

its 200-DMA and test the KRW1,170.00 figure today.

- Consolidation above the 200-DMA, now at KRW1,168.56, would bring the Nov 14

high of KRW1,172.00 into the picture. Conversely, a retreat under the ascending

channel floor at KRW1,163.87 would play into the hands of bears, clearing the

way towards the KRW1,160.00 level.

- S. Korea-U.S. talks about sharing the costs of U.S. military presence on the

peninsula broke down amid mutual finger-pointing. The White House has sought to

raise the annual bill by about $5bn. Meanwhile, N. Korea upped the ante by

demanding a complete cancellation of a postponed U.S.-S. Korea military drill.

- South Korean data docket this week features PPI (Wednesday) and trade data for

the first 20 days of this month (Thursday).