USDKRW is down 1% from yesterday's.......>

KOREAN WON: USDKRW is down 1% from yesterday's close as renewed optimism

regarding US-China trade talks has lifted risk assets, with the won being the

regional outperformer over the past two days. The pair trades at 1126.8, just

north of its 55-dma, and back into the middle of its four-month range. 

- KRWJPY remains above the 10.00 level and its 200-dma, which keeps the cross on

the front foot after holding key support around 9.80 last week. 

- The strong move in the won has not been supported by real yield spreads

relative to the US, which are actually at fresh cycle highs, thanks in part to

the drop in US breakevens on the back on lower oil prices. This leaves the

knee-jerk won gains susceptible to a reversal.