Forex Flash: S&P 500 dips on Cyprus news but remain clear out performer on YTD basis - BTMU

Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the S&P 500 did take a knock from the news from Cyprus yesterday, declining by 0.55% although the index remains the clear out-performer in dollar terms on a year-to-date basis, up nearly 9.0%.

He writes, “The key event this week in the US comes tomorrow when we have the FOMC and press conference from Chairman Bernanke. We fully expect Bernanke to play down the idea of QE being tapered down, especially in the wake of renewed uncertainties related to the eurozone debt crisis. That should limit the upside for the dollar through the remainder of the week.”