Session Recap: The Dollar rallies As Bernanke shows the exit open

FXstreet.com (San Francisco) - The market was waiting the Fed economic projections and the Ben Bernanke speech and they delivered. After the Chairman press release, market assumed that the fed is ready to start tapering and the Dollar flied against its major competitors.

The EUR/USD declined from the 1.3400 to closed the day below the 1.3300. The GBP/USD collapsed around 200 pips to test the 1.5450 level. The AUD/USD dropped hard to 2 ½ - yr low at 0.9280 and the USD/JPY advanced to reach 79.00 levels.

Main headlines in the American session:

The Fed leaves its interest rate unchanged at 0.0-0.25%

Bernanke talks exit strategy

Bernanke: The Fed is ready to start tapering

King: UK needs more BoE stimulus as recovery not assured

Wall Street collapses as Bernanke signals exit strategy

Jun 19, 2013

GBP/USD at 2-week low, tide turned in bear's favour

GBP/USD has suffered a major decline post Bernanke's speech, extending its yesterday's sell-off from 1.57 into fresh weekly low terrain right below 1.55. Today's 1% depreciation in the Sterling represents its lowest level in 2 weeks.

Flash: US not strong enough for Fed tapering off near term - Rabobank

After Bernanke met with the press following the FOMC meeting, Philip Marey, Senior US Strategist at Rabobank, sees that on balance, economic data are strong enough to warrant tapering off QE3 in the near term.