Dubai, United Arab Emirates-Sunday 19 January 2020 [ AETOS Wire ]
According to analysts from Reuters Polls, Bloomberg
and Alpho, the U.S.-Iran tensions easing will lead to growing interest
of investors in risky assets in upcoming weeks. Such a progress will
result in demand for currencies of Asian emerging markets, mainly Indian
rupee (INR) and South Korean won (KRW).
ASML Holding NV is major semiconductor chip equipment manufacturer. While Taiwan semiconductor import has been growing last two months, South Korea's semiconductor export fell 17.7% year-on-year in December following its 30,8% decrease in previous month. Nevertheless, the fall was not as low as expected. In terms of volume, however, overseas semiconductor supply grew in 7,9% compared with a year earlier. Peter
Wennink, President and CEO of ASML, attended conference in Barcelona in
the beginning of November 2019, and expressed his expectations on
strong demand for semiconductors in 2020 - mainly from logic chip
makers.
According
to official data, Taiwan's semiconductor devices import grew in
November and December in 156,4%, or more precisely in 158,6%.
Furthermore, South Korea's and Taiwan's import to China and growing
industrial production stabilizes and improves.
Based
on attitudes of main central banks (FED, ECB) and first signs of global
trade recovery it is a great signal to support export-based currencies –
mainly mentioned KRW and TWD, according to the Alpho analysis.
Moreover, released tensions in the US-China trade war support the
progress, too.
American
president Donald Trump and Iran representatives signal so far they want
no more military escalation. Middle East tensions easing and partial
solution to the US-China trade war could strongly support Asian
currencies and stock markets in first half-year period.
Second
half-year period outlook depends partly on the US presidential election
process, campaign style and probability that Donald Trump defends his
mandate. Possibility of Brexit failure, custom duties between the US and
EU and second phase of the US-China trade deal negotiations still pose a
high risk for the outlook.
Milosh Pham
Chief Analyst
Alpho
For more information: https://alpho.com/
Trading is risky and your entire investment may be at risk. TC’s available at https://alpho.com/
Contacts
Ziad El-Maadawi
Phone : +20122-788-4844
Email : ziad@influence-me.com
