Key line from Powell

Powell picture

The reversal in the dollar came after Powell said no decisions on the taper had been taken but added this:

"A gradual tapering process that concludes around the middle of next year is likely to be appropriate"

That would imply a $20B taper beginning around December. It's the strongest guidance received so far and it's a hawkish surprise that he would offer somewhat clear guidance on that before it was necessary.

Treasury yields have moved up on that comment and pulled the dollar upwards.