USDKRW is trading slightly stronger......>

KOREAN WON: USDKRW is trading slightly stronger following a weak open, with the

pair currently at 1124.2. Yesterday's drop on the back of renewed risk appetite

keeps the recent range intact. 

- The Kospi has also given back some of its opening gains as the won and Korean

stocks continue to trade in lockstep. 

- Rate expectations continue their recent advance, with the 2-year KRW swaps

rising another 2.3bps today to trade at 1.9075% as upside momentum builds. This

has seen the US-Korea 2-year swap spread pull back to 105bps from a peak of

111bps last week, which reduced some of the fundamental depreciatory pressure on

the won. 

- With nothing on the economic data calendar for the remainder of the week,

markets will continue to look to developments in China-US trade relations.