USDKRW has edged down from its highs,....>

KOREAN WON: USDKRW has edged down from its highs, tentatively breaking back

below the 1130 level. A close below here would keep the outlook neutral. 

- KRWJPY has recovered from its lows as bulls look to break above the 200-dma at

10.00 to return the outlook neutral. Korea-Japan real yield spreads have moved

higher over the past week or so but historical correlations continue to suggest

KRWJPY should be significantly lower, particularly as Korean CDS spreads are on

the rise. 

- Data out of Korea today has shown some weakness, with export growth for the

first 20 days of Nov falling to 5.7% y/y from 26.0% and household credit growth

falling to its lowest pace since Dec 2014 at 6.7% y/y. The trend of macro data

remains negative, undermining expectations of a BOK hike this month.