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Forex pairs in this Article » EUR/USD, USD/JPY (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ notes that the dollar was helped yesterday on Fed comments on speeding up the taper process.

Key Quotes

“The dollar has rebounded further versus the yen and gains have broadened to include most currencies in Asia with the Australian dollar under-performing once again. The dollar was helped by comments from Fed officials urging an increased pace of QE tapering."

"However, there should be no surprise from this with the comments coming from the two most hawkish incoming Fed presidents – Dallas Fed President Fisher and Philadelphia Fed President Plosser. Both indicated that they would be more comfortable with a faster pace of tapering as long as the economy continued to improve and the unemployment rate declined."

"But there was also no sense of urgency in their view of an increased pace of tapering and given these are the well-known incoming hawks on the FOMC, it does indicate decent underlying demand for the dollar at present."
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