USD/KRW has dropped sharply, but.........>

KOREAN WON: USD/KRW has dropped sharply, but remains limited to the downside by

the Dec 9 low of KRW1,185.97. A close below here would complete a short-term

double top reversal pattern and could potentially spark further sell-off.

- The rate has faced pressure in the wake of yesterday's MonPol decision from

the FOMC, as Fed Chair Powell seemed to set the inflation bar relatively high

for any future rate hikes to be warranted.

- The BoK said that the two interest-rate cuts delivered in Jul and Oct are

already improving capital conditions. They added that the global chip market may

enter recovery in mid-2020.

- From the KRW perspective, worrying reports re: North Korea's provocative

behaviour has been overshadowed by economic developments. Elsewhere, Japanese

and South Korean ministers are set to meet later this month.

- USD/KRW last deals at KRW1,186.35, -8.40 fig. on the day. A break under

KRW1,185.97 would open up the Dec 2 high of KRW1,183.70. Meanwhile, a recovery

of the 100-DMA at KRW1,188.60 would encourage bulls to target yesterday's high

of KRW1,194.95.