Contacts complained all morning about poor market liquidity as EUR/USD marched back and forth between 1.3540 and 1.3640 but with the afternoon unfolding, liquidity is even thinner than this morning. A sizable EUR/USD buy order at the 16:00 GMT fixing helped ramp EUR/USD up to 1.3600 from 1.3518 and we’ve retraced a huge chunk of that move straight away.

The one factor that Bernanke stressed today was the Fed’s exit strategy. As the economy recovers, the Fed can withdraw its support from the markets, Gentle Ben said.

The rest of the session will likely be taken up of watching primarily stocks but commodities as well. Quadruple witching, the expiry pf options, futures and all the various permutations of each happens today, which could make things even more volatile than usual.

EUR/USD trades at 1.3540