Currencies have reached their stretch points on these moves. Usually in such cases the price can act like an elastic band. It either stretches further and breaks or it snaps back.

The market is still hanging on to Ben’s words through the Q&A. Once that’s over we may get the next round of moves.

The question to ask is are we in a different fundamental picture than we were an hour or so ago?

He’s been very optimistic while still being very open on tapering.

He’s given guide dates on reducing purchases but left the caveat that it’s down to the data.

The market, through the journos questions, is still acting like a child and wants to be given the exact dates and conditions for tapering, but it’s still the same story though that they will have to wait and see.

All eyes will now go back to the data and the tapering trade will roll on.

My feeling is that this move is overdone but I’m wary that the moves are very strong. I’m going to take a very small long in cable down here, with a stop below the May/Jun 38.2 fib at 1.5467. We’ve got UK retail sales tomorrow and I feel they will come in better than expected.