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USDKRW has broken firmly back above 1140,.....>

KOREA
KOREA: USDKRW has broken firmly back above 1140, trading at 1142.9, as the Oct
11 high at 1144.75 acts as the last level of resistance ahead of fresh yearly
highs. The 1150 level comes in as the next upside target beyond here,
corresponding to the Sep 2017 highs.
- Our long-held bearish view on the won is based on the continued widening of
US-Korea real yield spreads, which suggest USDKRW should be trading around the
1200 level based on historical correlations. 
- The US-Korea 2-year real yield spread is now a record 23bps, having risen a
massive 145bps since the start of the year. The ~7% rally in USDKRW over this
period is relatively mild given this fundamental shift. 

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