I’m definitely not an expert on Fed-speak but some buddies in the bond market follow Ben’s every word religiously and they expect to hear some definite hints on when the tapering is likely to start. Early next year is best guess. What will that mean for the FX market?I think we will see some impatient USD longs getting squeezed but any falls should be limited.
Edit: The speech will be released 90 minutes before Mr Bernanke starts his Q&A in congress so we could see big swings as interpretations may differ from the tone of his answers. Best way to trade it is to have no positions and wait for wild swings.