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USDKRW is off to a strong start today....>

KOREAN WON
KOREAN WON: USDKRW is off to a strong start today following yesterday's large
drop, with the pair trading at 1126.5. The won was the best performing Asian
currency yesterday despite no major news events. Support for the pair comes in
at the 55 and 21-dmas at 1121.8 and 1119.7 respectively. Above here the broader
uptrend remains intact. 
- The won's recovery yesterday came despite slight weakness in Korean stocks and
the Chinese yuan, two assets which has been closely correlated with the won in
recent times. 
- The US-Korea 2-year yield spread continues to head in the USD's favour,
currently trading at 109bps, larger than the differential in inflation
expectations between the two countries. Korea's unemployment rate ticked up to
4.2% in August from 3.8% in July, which will likely make it difficult for the
BOK to tighten policy, keeping the real yield spread in the USD's favour. 
- Money supply and household lending data will be released today. 

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