EUR Bulls and Bears End Week Licking Wounds

The bulls and bears have all got a whipping of similar magnitude in a brutal week for asset price movement. A week where both the shorts and longs have at one time managed to be squeezed, ending the jobbing opportunities of a few unnerved speculators as many try to second guess the Fed's next move. So far, the accumulating price action is ending the week with global bourses on a firmer footing, and a dollar looking for air, as the market adjusts their remaining positions ahead of Helicopter's Ben's testimony and the FOMC meeting next week.

Global investors seem to be taking comfort from a couple of Fed watcher reports out yesterday - like the Wall Street Journal's Fed watcher Hilsenrath's piece. The articles suggest that any bond tapering would be gradual in nature. Did we really believe that a central banker, who has been providing "free" money, and promoting artificial wealth via an exuberant equity market, was going to turn off the taps immediately? Where is the rational...