Morgan Stanley Names BAE Systems Top European Defence Stock Despite Lower Price Target 
Buy the Dip: Gold Holds Strong at $3980, Targets $4150 
Elon Musk is remaking the world, like Henry Ford before him – but more dangerously 
Vietnam’s population hit the 100 million milestone. Where’s it headed? 
USA at 250: the Black American struggle for life, liberty and the pursuit of happiness 
AI can be a personal trainer in your pocket – but is it safe? 
In a rebuke to Trump, the Supreme Court rules that birthright citizenship is the law of the land 
Michael Burry Shorts Tesla at $416 as AI and Semiconductor Bearish Bets Expand 
JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026 
Gold Surges Past $4150 on Dovish Fed Signals and Weak Jobs Data; Bullish Outlook Prevails 
KRW has depreciated by more than 3% versus USD since early June. As a result, the won has gone from being Asia’s best-performing currency in the first quarter to the worst performing in the second quarter.
This is in line with fresh signals that foreign investors are pulling back its investment from South Korea’s bond market, largely due to the speculations that the Bank of Korea (BOK) could become more hawkish in the second half of this year.
Korea’s economy performed steadily this year, and more importantly, CPI inflation has returned to 2%, touching the BOK’s target for the first time since 2013 (the above chart).
This sort of speculations has triggered profit taking in the bond trading positions.
EURKRW – USDKRW 2M ATM vol spreads. Sell 1Y 25D USD call/KRW put.
The short end is pricing in rate hikes while it is expected that unchanged rates will prolong by 2Q’18. The short end might be attractive to receive at these levels.
The upward move in USDKRW over the past month has probably run its course and a consolidation or reversal phase could ensue.
