Despite Fed’s cautiousness last week, the US growth story is still the most compelling in G4. The US cyclical leadership will continue to support the dollar and UST yields in our view. We further think that it would take significant deterioration in US data to see Fed backing away from QE tapering and exit. This is partly because the policy seems driven by both recovery optimism and concerns about the size of Fed asset purchases. Importantly, the FOMC will continue to stress that tapering is not tightening. This could mean that it would respond to potential data disappointments ahead by talking down the short-term ... (full story)