Flash: Commodity FX, high-yielders to benefit from FOMC - JPMorgan

FXstreet.com (Barcelona) - Bernanke's post-FOMC press conference is the primary market mover for this week. According to John Normand, Head of FX at JP Morgan, no material change to the statement is expected.

However, Normand notes "Bernanke should explain how tapering differs from tightening (and even pausing, which comes between those two phases) and should deny that the Fed has been using taper talk to trigger a repricing of fixed income markets."

Since the market may have misread the Fed's intentions about the timing of tapering, Normand thinks "fixed income-sensitive currencies (commodity FX, EM, high-yielders) can rally into the event and just after" the Strategist said.