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2014.04.2108:40:00UTC+00Longer-Term Twd Dynamics Turning Less Constructive

Quotes from Standard Chartered:

-We believe longer-term dynamics are gradually turning less supportive of TWD appreciation. The deterioration in the financial account is a concern and if it persists, it will weigh on the external balance.

-Additionally, the likely delayed ability of Taiwan to regionally integrate via FTAs and the passage of the ECFA are likely to lead to greater intolerance of TWD appreciation in order to minimise any negative competitive hits.

-Finally, the US is likely to embark on its rate-hike cycle in 2015, and we therefore believe that the weak USD story is over. 

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