According to PANews, QCP Capital said that the Taiwan dollar rose 8% this Monday, and the South Korean won and other Asia-Pacific currencies generally strengthened. The spread between the Taiwan dollar spot and the one-year forward contract hit a 20-year high. The main reasons were the market speculation on the US-Taiwan trade agreement and the increase in US dollar asset hedging by Taiwan insurance institutions.
QCP believes that this may be an early signal of global capital flow adjustments, similar to the sharp fluctuations in the yen due to changes in interest rate differentials last year. Gold prices rose nearly 3% on Monday, reflecting market concerns about the weakening of the US dollar and geopolitical risks. In the future, Bitcoin may be affected by this, either decoupling from the trend of gold or benefiting from the progress of trade negotiations. The foreign exchange market may become a vane of macro changes.
