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Forex pairs in this Article » EUR/USD (Córdoba) - The prospect of the Fed beginning to taper its QE programme 'within the next few meetings' has sent the markets into a whirlwind of activity and it has also led to a renewed focus on economic data, says David Bloom, analyst at HSBC.

"It appears that we have returned to a situation where US economic data is once again paramount for the USD's fortunes and therefore central to the FX market", the analyst comments. "However, there has also been a change in how investors should interpret the economic data".

"Now that the Fed has provided forward guidance for when it may begin tapering and eventually end its QE programme, it is the level of the data that really matters, rather than just the performance relative to market expectations", HSBC analyst said. "From this point onwards we must continue to see the data come above or at the FED breakeven level for the USD momentum to persist".
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