USDKRW has reopened stronger after the...>

KOREAN WON: USDKRW has reopened stronger after the three day break with the pair

at 1121.50, up ~0.20% on the day, back into the center of its long term range.

KRWJPY continues to flirt with the 9.8 level as the pair looks for direction. 

- The US-Korea real 2 year swap spread has edged in Korea's favour lately,

which, together with the ongoing plunge in Korea's 10 year CDS has provided some

fundamental support to the won. However, the currency remains overvalued

relative to these fundamental drivers. 

- The won continues to take its lead from the CNY and the EUR with correlations

picking up in recent trading. 

- On the headline front Yonhap reports that Stephen Biegun, U.S. special

representative for North Korea, arrived in Pyongyang Wednesday for talks with

his North Korean counterpart on the second summit between President Donald Trump

and North Korean leader Kim Jong Un.

-Foreign reserves are out tomorrow and look to be plateauing alongside the

recent drop in the trade surplus.