Forex Investment and Currency Trading

TWD is poised to strengthen in Q2. Capital flows have improved modestly, as yield spreads narrow and foreigners turned into net equity buyers. Target is 30.00 by end-Q2.
Export growth bounced in early 2008. However, Lunar New Year distortions likely exaggerate the strength. Indeed, the RBS leading electronics export index remains in negative territory. Export orders from mainland Chinese manufactures are also softening, while exports from mainland China to the rest of the world are also weak.
Inflation will remain high. Headline inflation was 3.9%y/y in February, while the three-month ago change is also firm. Volatile food and energy prices are driving [...]

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