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USDKRW is once again testing neckline.........>

KOREA: USDKRW is once again testing neckline support at 1117.7, with the won
benefitting today amid strong trade figures suggesting the export sector is not
being undermined by rising global trade tensions. The 55-dma at 1114.1 is also
within touching distance. 
- A break below these levels would target the gap left at 1110.0.
- The won's rally is at odds with the continued fall in rate expectations,
particularly at the longer end of the curve. 10-year swaps have fallen 15bps in
August to trade at 10-month lows of 2.1%.
- US-Korea swap spreads continue to test multi-year highs at every tenor,
suggesting that the fundamental case for continued won strength is very weak. 

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