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USDKRW trades just off its daily lows....>

KOREAN WON
KOREAN WON: USDKRW trades just off its daily lows at 1127.9 driven by a recovery
in risk appetite led by Chinese stocks and hawkish comments by BOK Governor Lee
regarding the probability of a Nov rate hike  should the real economy experience
no negative shocks. 
- With USDJPY edging higher, KRWJPY is testing its recent range highs around the
10.0 level, with bulls looking to close above here to extend gains and suggest
the 9.8 area is acting as a base.  
- However, the ongoing rise in Korean inflation expectations relative to Japan
has seen the real 10-year bond yield spreads edge sharply in the yen's favour in
recent months, and historical correlations with KRWJPY suggest the pair should
be trading significantly lower.  

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