USDKRW is trading at session highs at.........>

KOREA: USDKRW is trading at session highs at 1123.00 with test of resistance at

its 21-DMA (1123.64) looking increasingly likely in the short term. 

- Korean swaps are flat today with the 2-year remaining at 1.9950%, as the

spread with the US continues to head in the latter's favour, undermining the

won's fair value. 

- Korean reserve data will be released today and are likely to show a further

build up given the country's strong trade balance figures released yesterday. 

- The country's vastly improved external balance sheet in recent years has

helped CDS spreads fall to new multi-year lows, providing support to the won,

but as the US-Korea real rate spread widens, USDKRW should face further

fundamental upside pressure.