Salient to Investors:

Eric Viloria at Gain Capital said expectations of QE tapering is positive for the US dollar because it means a slowing in the expansion of the Fed balance sheet.

Alan Ruskin at Deutsche Bank  said the tapering story is very much in play, and the employment data suggests the economy is holding up well in the face of fiscal drag.

The median economist expects the Fed to trim QE to $65 billion a month at the October 29-30 FOMC meeting.

FRB of Dallas President Richard Fisher says the Fed should reduce QE now.

Roberto Mialich at UniCredit said Japanese PM Abe’s comments were unsatisfactory to the market and reinforcing the move higher in the yen as heavy shorts cover. Mialich said as long as the stock market remains under pressure the yen can remain firm.

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