USD/KRW has crept higher early on,.......>

KOREAN WON: USD/KRW has crept higher early on, catching up with broader risk-off

flows inspired by weekend news flow. Meanwhile, South Korea released trade data

for the first 20 days of the month. Declines in imports and exports moderated,

with shipments bolstered by an uptick in chip exports.

- North Korean state media said that Pyongyan has prepared 12mn leaflets to be

dispatched to South Korea via 3,000 balloons. Elsewhere, a gov't source told

Yonhap that the DPRK has been sending troops to border sentry posts for

clearance and maintenance, but Seoul doesn't see it as the fulfilment of the

North's threats to redeploy soldiers to the border.

- USD/KRW sits +4.00 fig. at KRW1,213.65. A break above the 100-DMA at

KRW1,215.27 would open up Jun 17/3 highs of KRW1,218.60/1,220.05. Bears look for

losses past Jun 18 low of KRW1,208.10, towards Jun 12 low of KRW1,203.35.

- South Korea reports PPI tomorrow and consumer confidence on Thursday.