USD/TWD to trade in an elevated range of 27.80-28.20 over the next three months – Credit Suisse
|Market’s perception of an “East vs West” standoff will likely lead USD/TWD to remain sensitive to Ukraine headlines. Economists at Credit Suisse expect USD/TWD to trade higher in an elevated range of 27.80-28.20.
China’s low tolerance for volatility suggests cross-straits escalation is unlikely
“We don’t think the situation in Ukraine is comparable to Taiwan. China views Taiwan as an internal, domestic issue, so its leaders do not consider the actions/disputes of two sovereign states (China’s Ministry of Foreign Affairs still affirms Ukraine’s sovereignty) as a template to settle issues regarding Taiwan.”
“China’s recent efforts to minimize FX and financial market volatility suggest its leaders have little appetite for an escalation of Taiwan Strait tensions that would add to financial market stress. Nevertheless, the market’s perception of an ‘East vs West’ standoff will likely lead USD/TWD to remain sensitive to Ukraine headlines.”
“We expect USD/TWD to trade higher in an elevated range of 27.80-28.20 over the next three months.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.