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Markets reacted to yesterday's poor Taiwan...>

TAIWAN: Markets reacted to yesterday's poor Taiwan export orders (down 3.7% on
the year) by selling the TWD further against the USD Tuesday, prompting the pair
to hit fresh cycle highs up at 31.468, the weakest level since early 2017. While
the export orders numbers actually fared slightly better-than-expected, markets
focused on the sharp drop on export orders to China, which fell close to 10%.
The data, twinned with further pressure on technology suppliers working with
Huawei (a critical sector for Taiwan) worked against the currency and helped
press the Taiwanese sovereign curve lower and flatter.
-USD/TWD options remain highly active, with the largest trades of the day eyeing
further gains in the pair. Call strikes as high as 33.05 crossed in early
Europe, with notional waged via calls outnumbering puts by 2:1.
-Understandably, TWD remains highly sensitive to trade tensions between the US
and China and downside pressure remains on TWD throughout European hours - the
TWD 1m NDF continues to gain, hitting fresh cycle highs after the onshore close.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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