Fed Doves Support Euro

Last week, Fed Chairman Bernanke surprised markets with his forthright assessment on a possible tapering of asset purchases. This week, the doves struck back, with Kocherlakota and Dudley, partly criticizing the Fed's forward guidance on intebers Kocherlakota and Dudley, partly criticizing the Fed's forward guidance on interest rates, partly taking into consideration market's volatility, with the implication that any tapering of purchases may not materialise if market declines extend into the rest of summer. We await more Dudley remarks on Thursday, scrutinizing whether  he shows any signs of hawkishness (providing time reference for tapering).  We issued a new set of Premium trades; 2 on EURUSD and 1 on GBPUSD in light of triple moving average confluence in the former and stabilizing 55-MA in the latter. These and more trades in the latest Premium Insights.