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USD/KRW opened sharply lower today as....>

KOREAN WON
KOREAN WON: USD/KRW opened sharply lower today as the recently heightened
geopolitical tensions have eased. Markets began to calm down already in
yesterday's Asia-Pac session, as Iran's attack on Iraqi-U.S. military bases
(which sent USD/KRW to just shy of KRW1,180.00 in early trade) brought no
casualties/escalation. The fading of risk-off reaction continued after onshore
KRW trading closed. Participants welcomed an address from U.S. Pres Trump, who
suggested his preference for economic sanctions rather than military measures
against Iran. The de-escalation of tensions was coupled with a considerable
retreat in oil prices, another factor lending support to the won.
- USD/KRW sits at KRW1,162.00, -8.85 fig. on the day. The psychological
KRW1,160.00 level provides the initial layer of support. A break below there
would open up the lows of Nov 8/Jan 2 at 1,153.95/75, the worst levels since
early Jul. Bulls need to see the rate fill the gap from yesterday's low of
KRW1,169.65 to regain some poise.
- The local docket for the remainder of this week is empty, but we have South
Korean unemployment & BoK monetary policy decision coming up next week.

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