I thought that the taper crowd and dollar bulls would come unstuck last night but wasn’t expecting those moves.
Eamonn nailed the summary Bernanke – what was so dovish about his Q&A?
I sat through the Q&A and afterwards thought that would be it for the night. I then got pasted for 200 pips selling 1.50 and 1.30
I did manage to grab USD/JPY at 98.25 and added to my EUR/GBP shorts at 0.8675.
I think the immediate retreat from 1.32 and near 1.5200 showed that the market was using the lack of liquidity to have some fun and I wouldn’t be surprised to see us back down near pre-Ben levels come the end of the day.
The market is a long way from burying the taper bone it’s got in it’s teeth and Bens comments will probably only be a short term set back to that. Any good US data will have the taper bugs jumping in again.