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USDKRW opened above resistance at its Sep.....>

KOREA: USDKRW opened above resistance at its Sep 25 high and while the pair has
edged lower from its opening spike, it remains clear of the 1130 level, which
now acts as support. A potential bull flag is forming suggesting further gains
over the medium term.
- Inflation data released earlier today showed a sharp jump in both headline and
core CPI. Headline CPI jumped 0.7% m/m and 1,9% y/y, its fastest pace since Sep
- Rate markets have responded positively to the CPI data with the 2-year swap
adding on a further 1.3bps to trade at 2.0080%. Rising yields are providing
little help to the won due to the already large gap in real yields vs the US. 
- The ongoing rise in Korean breakevens, which hit new four-year highs
yesterday, is also undermining Korean real yields, keeping upside pressure on

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