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USDKRW is breaking higher, currently at.......>

KOREA
KOREA: USDKRW is breaking higher, currently at 1129.40, even as the BOK's rate
decision sees interest rate expectations edge higher. Th pair is now trading in
a new range, with the weak yuan weighing on the won and adding to the downside
risks posed by declining real rate spreads. 1150 is the next level of
resistance.
- Rate markets have risen, with the 6 month interest rate swap rising ~2bps on
the news to trade at 1.711%. The majority of analysts see the BOK raising rates
by year-end even as the employment picture remains questionable and the US-China
trade war poses an acute risk to exports. 
- Our fair value model for USDKRW, based on risk-adjusted real yield spreads
still suggests that the pair should be ~4% higher. 

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