Photo: Reuters/Kim Hong-Ji

Considering that China has increased pressure on N. Korea (voting with the US on sanctions at the UN and staging exercises off the Korean peninsula), things are improving. The big risk is a serious disagreement between the US and China. Now, North Korea is the odd man out. Unfortunately, Trump last night sounded a bit like Kim Jong-un.

CNY traded tick for tick with the yen in recent days while KRW fell.

Source: Bloomberg

I recommended owning KRW vol a couple of weeks ago, and it has been rising:

Source: Bloomberg

I wouldn’t take the trade off today, but it is close to its use-by date.