Filed Under:
Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - More talks about the taper on Monday but it seems market has assumed the Taper is a fact and it isn't a problem anymore. As it happened last Friday, stocks and risky currencies advanced on the session and just ignored the taper comments.

Three Fed's presidents commented on bond buying program cuts on Monday, the Fed's St Louis president Bullard stated that the positive trend in the labor market make cuts in Fed's bond purchases more likely. Fed's Dallas Fisher affirmed that the Fed should start tapering "at the earliest opportunity." Finally Fed of Richmond's President Jeffrey Lacker commented that he expects a taper discussion at next week FOMC meeting.

Stocks advanced in the first session of the week, but gains were limited. However the situation in the currency market was pretty different with the Euro and the Pound rising against the Dollar and the Yen. The USD/JPY climbed to 1-week highs.

The EUR/USD advanced for fifth day and it consolidated levels above 1.3700 with the pair closing at 1.3740, near to 6-week highs. According to FXBeat analyst Jamie Coleman, there is a "1.3750 barrier rumored in play."

The USD/JPY advanced further on Monday with the pair trading above the 103.00 area. USD/JPY "has technical resistance at 103.38 to contend with followed by offers protecting 103.50 barriers scattered from 103.40 on up," Coleman says. "If we are able to overcome those offers we have the late-May highs at 103.78 to target. 104.00 barriers will be in play if trend highs yield."

The GBP/USD jumped on Monday to break above the 1.6400 area finally and close at 1.6425. However, the Cable remains below the 1.6440 double top. Ilian Yotov from AllThingsForex commented in the Forecast Poll that 'as the Bank of England maintains its "neutrally-hawkish" stance, the GBP could continue higher vs USD if strong risk appetite and good UK data provide the catalysts for further sterling strength."

Main headlines in the American session:

Fed's Lacker: Risks of more stimulus outweigh the rewards

Bullard likes the idea of a small taper

Bullard: One reaction to recent econ data a small taper at the upcoming meeting

Bullard: If Fed tapers soon, financial markets will be able to digest it

Lacker: Fed should clearly telegraph path of QE reduction

Fisher, too, against changing 6.5% unemployment threshold

Wall Street advances despite taper rumors
comments powered by Disqus
Trading Center