USDKRW continues its uptrend with the....>

KOREAN WON: USDKRW continues its uptrend with the pair currently trading at

1131, just above ST support at 1130 which marks the Monday high. 

- Bears would need a sustained move below 1130 to gain some breathing room and a

move below 1120 to suggest a sustainable reversal is in play. Otherwise, the

bulls remain in charge and the 1150 target is approaching. 

- BOK board member Koh Seung-beom's comments yesterday that rising household

debt and the widening interest spread with the US are major issues that the

country now has to deal with shows that policymakers are concerned with the

impact of low rates in Korea.

- However, it would take a significant hawkish shift for US-Korea real yield

differentials to warrant won strength given how far they have moved in the US's

favour over recent months.