Talking Points:

• In a heavily debated FOMC gathering, the central bank decided to Taper QE3 from $85 to $75 billion

• Economic forecasts show modest improvement and Chairman Bernanke suggests steady a steady Taper in 2014

• The seasonal fade in liquidity proves an effective curb to risk aversion, but don't write it off

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Watch the recording of John Kicklighter's coverage of the FX market's reaction to FOMC's announcement of the revered and feared Taper. Many market participants expected - and were positioned - for a first reduction in the QE3 pace for some time in 2014, but the central bank made its first $10 billion reduction (from $85 to $75 billion) today. Why didn't the overleveraged 'risk' markets collapse, and what does this mean for the dollar going forward?

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