USD/TWD likely to trade in 30-30.5 range with potential upside momentum, says Scotiabank

The USD/TWD currency pair is expected to trade in a range of 30.0 to 30.5 with upside potential at the moment, according to the latest report from Scotiabank. The TWD will trade along with swinging risk sentiment while remaining susceptible to external uncertainty including the US tax reform plan, the nomination of the next Fed Chair and corresponding cross-border equity flows.

Moreover, Japan’s Nikkei newspaper reported Tuesday that initial shipments of Apple’s new iPhone X will total 20 million units this year that is only about half the total number forecasted by a highly-respected market analyst.

Taiwan’s inflation outlook is steady and real interest rate is not on the low side, according to the prepared text of a speech to be delivered to the Legislative Yuan. The CBC lowered its forecasts of CPI inflation for 2017 to 0.65 percent y/y from the September estimate of 0.80 percent but maintained its prediction of 2018 CPI inflation at 1.12 percent. Meanwhile, the central bank left its growth outlook for 2017 and 2018 unchanged at 2.15 percent and 2.20 percent respectively.

On the FX side, the CBC reiterated it will keep order in local FX market with a managed-floating currency regime. It pledged to smooth extreme market swings in the TWD exchange rate while reckoning no intention and capability to change the direction.

Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest