Fed and ECB to communicate tapering path, watching yen crosses? - Nomura

Analysts at Nomura explained that the Fed and ECB are taking another step toward policy normalisation; quantitative tightening and tapering.

Key Quotes: 

"Their balance sheet adjustment could temporarily weaken risk sentiment, but the impact of widening rate spreads will be stronger for yen crosses unless the low-volatility environment is seriously challenged."

"Communication strategies employed by the Fed and ECB to provide information on their forthcoming balance sheet adjustment path (officially or unofficially) could avoid a sharp rise in volatility in the financial market, which would allow yen-crosses to appreciate."