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Forex pairs in this Article » EUR/USD (Bali) - The currency complex will be a follower rather than a leader in today's taper decision, notes HSBC, with FX being driven by reactions of other financial markets.

Key Quotes

"G10 FX correlations with US yield differentials are rising sharply, whereas correlations across all G10 cross rates are flatter. Similarly, equity market sensitivities are most pronounced when the USD is involved, especially for larger equity market declines."

"There is an unusual degree of uncertainty surrounding this meeting, not just about the outcome, but about the bond and equity market reaction to any given decision. In positioning for the outcome, therefore, you need to decide not only if they will taper but also whether such a taper, alongside any other announcements, will prove traumatic or tranquil."
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