USDKRW is back above 1140, currently.....>

KOREAN WON: USDKRW is back above 1140, currently trading at 1140.1 as the

uptrend resumes and the won continues to act as the weak link among Asian FX. 

- The release of a report identifying 13 undeclared North Korean missile

operating bases has not helped the won's cause, triggering concerns that the

Trump administration is being 'played' by the North Korean regime.

- The won's elevated real effective exchange rate and the ongoing divergence in

US-Korea real yields leaves the currency susceptible to further losses, with our

estimate of fair value around 1250. 

- The release of import and export prices came in line with recent trends

showing strong import price growth, largely thanks to rising oil prices in y/y

terms. The recent drop in crude should help to alleviate such pressures.