Yen Sinks as BOJ Rate Hike Fails to Impress Markets 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
RBA Set for September Rate Hike as Inflation Stays High 
BlackRock’s Rick Rieder Favors Bonds Over Stocks as Treasury Yields Surge 
Zcash Mining Profits Surge as Liquidity Risks Grow 
Fed Minutes Signal Another Rate Hike by Year-End 
JPMorgan CEO Jamie Dimon Warns Mythos AI Raises Cyber Risk Tenfold 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Bitcoin Price Falls Below $83K as Liquidations Hit $697M 
Circle Stock Falls 4% as Crypto Selloff Overshadows SAP Pay Expansion 
DogecoinVM Makes DOGE Transactions 300x Faster 
Add as a preferred source on Google
We emphasize potential trading opportunities related to anomalies or dislocations in emerging market currencies.
TWD has been too strong versus rate differentials,
The TWD is more correlated to interest rate differentials than most EM currencies; the move lower in USDTWD in the past month has far exceeded levels consistent with rates.
Assuming the Fed hikes by year end (we expect a rate hike in December) or at the minimum the market continues to ascribe a decent probability to a near-term rate increase coupled with the likelihood that the CBC eases, rate differentials should move further in the USD’s favour.
Taiwan is also susceptible to renewed fears of China’s growth slowdown. While negative forward points provide positive carry in shorting the TWD.
Hence, we encourage longs in USDTWD on its attractive carry and China exposure sentiment toward EM currencies could be in the procedure of shifting and we prefer to focus on regional low yielders in expressing a bullish dollar view. The slew of hawkish commentary from Fed officials in recent weeks as put the possibility of a rate hike back in play for H2.
