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USDKRW continues to trade in a small.....>

KOREAN WON
KOREAN WON: USDKRW continues to trade in a small contracting range between 1123
and 1130, with the broader trend for further dollar strength.
- The ongoing yield differential between the two countries provides fundamental
support to the greenback, with the 5-year yield spread at an all-time high in
the US's favour at 66bps. 
- USDKRW is increasingly being driven by monetary policy divergences, with
USDKRW pushing higher in spite of improved global risk appetite. Korea's 5-year
CDS for example is back down at just 46bps, close to all time lows, which has
typically been a bullish signal for the won. 

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