USDKRW continues to trade below the 1120......>

KOREA: USDKRW continues to trade below the 1120 level, currently at 1118.7,

consolidating its drop below uptrend support from the June lows. KRWJPY is

testing Tuesday's highs, currently at 10.167 as it looks to break higher amid a

recovery in risk appetite which has seen the Kospi maintain gains above the key

2100 level. 

- Rate markers are not receiving much of a lift from the rise in equities with

2-year swaps up just 0.8bps at 1.8998%, keeping the downtrend in real yields

intact. 

- A statement submitted to parliament by the BOK today noted that the impact

from the U.S.-China trade dispute on South Korean exports will probably be

minimal this year but may increase in 2019. The BOK also noted that the bank

will keep policy accommodative judging whether it's necessary to adjust the

level of policy accommodation amid risks of imbalances stemming from the rise in

household and corporate debt.