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USD/KRW returned from holidays last......>

KOREAN WON
KOREAN WON: USD/KRW returned from holidays last Tues with a sharp rally, which
initially ran out of fuel near the 100-/200-DMA crossover in the KRW1,177-79
area. Thursday's break above there, however, sparked a renewed surge, which
today resulted in the apparent completion of a double bottom reversal pattern,
developed since Oct. Last week's pick-up in topside momentum was prefigured by a
shorter-term double bottom, formed through Dec & Jan. That being said, momentum
studies suggest that USD/KRW is slightly overbought as it is heading towards
resistance from the 76.4% retracement of the Aug 6 - Jan 14 rally/Oct 2 peak.
- Wuhan coronavirus has propped up USD/KRW, with today's fresh impetus provided
by the post-LNY re-opening of Chinese onshore mkts, which absorbed spiralling
virus concerns & sold off even as the PBoC took measures to salvage sentiment. 
- Locally, S. Korea reported a narrower than exp. Jan trade balance, underpinned
by faltering imports & exports. On the plus side, the data was distorted by LNY
(it fell in Feb last year) & preliminary readings indicated improvement in chip
exports. Worth reminding that recent GDP & industrial output prints were solid.
- See chart at: https://emedia.marketnews.com/marketnewsintl/USDKRW0302.png

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