USD/KRW has received increased...........>

KOREAN WON: USD/KRW has received increased interest over the last week or so,

with the cross moving to the highest levels observed since March of 2017. Cross

last trades back from recent highs, 2 points or so lower on the day at

KRW1,158.75 aided by the fallout from Friday's U.S. GDP data (Strong headline,

softer internals).

- Some points we have flagged re: the cross over the last week or so: softest

South Korean GDP prints since the GFC, chipmaker worry, the delayed effect of

local dividend season, additional budget measures being implemented, the U.S.

removing waivers re: Iranian crude sanctions, outright USD strength and talk of

onshore USD shortage spilling into FX swaps which resulted in speculation that

authorities were intervening in the FX space. The South Korean finance ministry

has noted that it stands ready to intervene in FX if required, and if FX

volatility worsens. The ministry has also noted that it has no plans of revising

the government's GDP growth target.

- The 10 March 2017 high at KRW1,162.98 continues to provide the initial bullish

target.