USDKRW trades near daily highs at........>

KOREAN WON: USDKRW trades near daily highs at 1128.8 after rallying 0.6% from

its opening lows. The multi-month sideways trading range remains intact and a

close above 1140 would be needed for the pair to resume its broader uptrend. 

- Despite the slight recovery in risk appetite across global stocks KRWJPY

trades at range lows, back below its 200-dma, which returns the focus to the

downside. Headlines that North Korea may be developing surface to ship missile

capabilities, as well as Sunday's comments by the BOK regarding risks to EMs

appear to be weighing on the won.

- While real yield spreads have move in the won's favour over the past week,

they still suggest the won should be trading much weaker vs both the USD and the

yen. 

- Also, widening US corporate credit spreads could translate into widening

Korean CDS spreads and a weaker won, as has typically been the case.