USDKRW is trading just off its daily.....>

KOREAN WON: USDKRW is trading just off its daily lows at 1119.0 as 2-year rates

sit just off their daily highs at 1.87% as speculation grows that the BOK will

tighten policy at next month's rate meeting on Oct 18, or at least before the

end of the year.

- A close below here in USDKRW would end the week on a bearish note, with the

pair dropping back below its 21-dma. 

- However, the rate picture would have to improve significantly in Korea to

justify continued won strength based on historical correlations between rate

US-Korea spreads and the USDKRW, which suggest the pair should be trading ~5-10%

higher.