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Stock impact report

Taiwan Dollar Optimism Fades in Options Market as Fed Bets Shift [BNN Bloomberg (Canada)]

Barclays PLC (BCS) 
Company Research Source: BNN Bloomberg
Gauges of demand for bullish call options over bearish puts on the US dollar versus its Taiwanese equivalent have returned to neutral territory, having mostly been below zero for the past four months. That suggests traders have dialed back their positive bets on the Asian currency as they come to terms with the greenback's resilience. Mounting evidence of a robust US economy has led some traders to push back the expected timing of the Federal Reserve's rate cut, bolstering dollar bets. The latest evidence came from strong manufacturing data, which further tipped the scales in favor of the US currency. “Relentless dollar strength, fueled by ISM manufacturing data, hawkish Fed rhetoric and ongoing yuan and yen softness may continue to weigh on the Taiwan dollar in the interim,” said Christopher Wong, a foreign-exchange strategist at Oversea-Chinese Banking Corp. Policymakers may step in to smooth excessive volatility but are unlikely to reverse the trend, he added. The so-called Show less Read more
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