USD/KRW has ebbed off highs but is yet...>

KOREAN WON: USD/KRW has ebbed off highs but is yet to fill the opening gap. A

round of risk negative headlines re: U.S.-China tensions over Huawei &

technology from over the last few hours, coupled with the news that the White

House will review tariffs on China only after domestic presidential election,

have weighed on the broader Asian EMFX space & limited KRW.

- South Korean unemployment rate registered at 3.8%, consensus was for no change

from November's 3.6%. At the same time, however, the employment rate for 2019

was record-high as part-time and elderly workers flocked into the labour market.

- USD/KRW last trades at KRW1,158.05, +2.95 fig. Bulls need the rate to fill

today's opening gap before they target the 50-DMA at 1,170.38. Bears need a fall

through the Jul 1 low at KRW1,148.90 to regain impetus. It may prove difficult,

with the lows of Nov 8, Jan 2, Jan 13 & Jan 14 clustered just above that level.

- Friday's monetary policy decision from the BoK takes focus during the

remainder of the week. The Bank is heading for a major reshuffle of its

seven-member board, with four members finishing their terms on April 20, while

Snr Dep Gov Yoon has his term expire in August.