Free Trial
US EURODLR OPTIONS

Large SFR call spread

ENERGY

EU Agree on 8th Sanctions Package

USD

Still edging higher

UK

Attention turns to Liz Truss

GREECE T-BILL AUCTION RESULTS

13-week GTBs

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

On-Going Military Exercises & Weaker Tech Sentiment In Focus

TWD

1 month USD/TWD spent most of the post Asia close above 30.00, although we didn't get beyond 30.05. Spot finished yesterday's onshore session just above 30.01. Whilst the pair may be slowly establishing a higher range, vol and risk reversal metrics remained fairly benign. Reflecting recent tight ranges, the 1 month implied is back just under 6%, versus August 2 highs close to 7.50%.

  • There was focus on China announcing a continuation of military exercises around Taiwan island. The exact location of the drills remains unclear but the Taiwan Defence Ministry stated over 20 aircraft crossed the informal median line which divides the Taiwan Strait yesterday.
  • There is a sense such these military exercises, along with those recently concluded, could become the new norm. That is, a closer military presence to the island.
  • Broader sentiment doesn't appear too fazed though and the Taiwan authorities noted some shipping and aircraft activity has resumed. Nevertheless, be mindful of headline risk around this issue.
  • Elsewhere the focus will be on a weaker tech lead overnight. Weaker than expected revenue from Nvidia saw tech shares underperform. The SOX fell by 1.61%. Yesterday Taiwan shares finished down -0.10, while offshore investors sold local shares (-$47.2mn).
  • Taiwan export growth was better than expected late yesterday, up 14.2% YoY, versus 11.1% expected for July. The trade surplus remained healthy at just over $5bn, which was also above expectations.
230 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

1 month USD/TWD spent most of the post Asia close above 30.00, although we didn't get beyond 30.05. Spot finished yesterday's onshore session just above 30.01. Whilst the pair may be slowly establishing a higher range, vol and risk reversal metrics remained fairly benign. Reflecting recent tight ranges, the 1 month implied is back just under 6%, versus August 2 highs close to 7.50%.

  • There was focus on China announcing a continuation of military exercises around Taiwan island. The exact location of the drills remains unclear but the Taiwan Defence Ministry stated over 20 aircraft crossed the informal median line which divides the Taiwan Strait yesterday.
  • There is a sense such these military exercises, along with those recently concluded, could become the new norm. That is, a closer military presence to the island.
  • Broader sentiment doesn't appear too fazed though and the Taiwan authorities noted some shipping and aircraft activity has resumed. Nevertheless, be mindful of headline risk around this issue.
  • Elsewhere the focus will be on a weaker tech lead overnight. Weaker than expected revenue from Nvidia saw tech shares underperform. The SOX fell by 1.61%. Yesterday Taiwan shares finished down -0.10, while offshore investors sold local shares (-$47.2mn).
  • Taiwan export growth was better than expected late yesterday, up 14.2% YoY, versus 11.1% expected for July. The trade surplus remained healthy at just over $5bn, which was also above expectations.