USDKRW has opened stronger and trades....>

KOREAN WON: USDKRW has opened stronger and trades at 1119.65, keeping the near

term trend of higher lows intact for now. A contracting triangle pattern has

developed from the Jan 2 low and the Jan 3 high suggesting break is likely in

the near term. Given the ongoing strength of the yuan and the large topping

pattern evident in USDKRW the balance of risks favours a downside break. 

- That said, Korean swap rates are showing few signs of narrowing the gap with

the US even as inflation expectations recover faster in Korea. This suggests

that the won is being supported by improving global risk appetite, and the main

risk here is a resumption of US equity weakness following recent gains. 

- KRWJPY failed to break above its range highs yesterday despite a close

attempt, which has seen the pair retreat from the 9.7 level in early Asian

trading.