Ethereum Retreats Toward USD 2,000: Technicals Signal Caution as ETH Mimics Bitcoin’s Pullback 
FxWirePro- Major European Indices 
RBC Capital: European Medtech Firms Show Minimal Middle East and Energy Risk Exposure 
FxWirePro- Major Pair levels and bias summary 
Strait of Hormuz Disruption Sparks Global Oil Supply Fears 
Bank of Japan Warns of Regional Economic Risks Amid Middle East Conflict and Rising Oil Prices 
Morgan Stanley: Fed Rate Cuts Still on Track Despite Oil-Driven Inflation 
UAE's Largest Natural Gas Facility Suspended After Attack-Triggered Fire 
FxWirePro:NZD/USD remains vulnerable as Trump's latest deadline leaves investors on edge 
FxWirePro: AUD/USD recovers slightly from early decline but bears are not done yet 
Is dark chocolate healthier than milk chocolate? 2 dietitians explain 
FxWirePro: EUR/AUD eases as market awaits Iran deadline 
The break of 200DMA opens room for more upside in USDTWD; consequently we uphold USDTWD long position via NDFs due to:
EM currencies should come under further downward pressure through Q1.
Negative forward points offer modest positive carry.
The possibility of heightened risk premium related to US politics (protectionism and geopolitical concerns).
The currency is lagging the move in rate differentials.
The Chinese growth expected to slow in H1 2017 and ongoing RMB depreciation.
Hence, we advocate initiating longs in USDTWD 3m NDF at 32.006 with a target at 33.7 (+5.2%) and a stop at 31.4 (-2.0%). Hence, one can achieve an attractive risk-reward ratio with this strategy. The stop is placed below the 100DMA (31.63) and below trend line support from the September lows. The trade horizon is three months and positive carry is modest (+2bp/month).
Risk profiling: A reversal in the dollar trend, optimism developing regarding Chinese growth, and diminished RMB depreciation risks could pose the adverse impact on the above strategy. Additionally, any failure to break the 200 DMA could see a retracement lower.
