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USDKRW managed to close below the 1140...>

KOREAN WON
KOREAN WON: USDKRW managed to close below the 1140 level yesterday and has
opened below it again today, trading at 1137.6, keeping the short-term outlook
neutral. The won is shrugging off weakness in the Kospi, which is down ~0.7%.  
- Upside fundamental pressure is building though as US-Korean real yield spreads
continue to move in the US's favour and weakness in global credit markets puts
upside pressure on Korean CDS spreads. 
- Korean 2-year swaps continue to move lower, currently trading at 1.9050% as
BOK rate hike expectations are being unwound.
- KRWJPY held above the 9.80 level yesterday, maintaining its recent trading
range, but fundamental downside pressure is building as real yield differentials
move in the yen's favour. 

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