USDKRW is trading back above its.........>

KOREAN WON: USDKRW is trading back above its 55-dma this morning at 1122.75,

rising 0.5% on the day as the pair reacts to last week's strong close for the

greenback. The won remains stuck in the middle of its 2.5 month range. 

- The Kospi is also down 0.25% at 2310.7 as the 21-day rolling correlation

between the won and the Kospi remains positive at 0.30.

- The rise in USDCNH is also pressuring the won as the pair trades back at its

recent range highs, with the 21-day rolling correlation between KRW and CNH

still elevated at 0.76.

- The won is being supported by the ongoing rise in rate expectations, with the

2-year swap rising another 0.75bps this morning to extend last week's gains and

trade at 1.8850%. This has seen 2-year USD-KRW swap spreads fall to 107bps. That

said, rate differentials remains bearish for the won from a fundamental

perspective.