FXstreet.com (Barcelona) - Analysts at NAB Global Markets are of the opinion that as we head into the FOMC statement and press conference, Bernanke is not likely to backtrack on his previous comments of tapering asset purchases.

NAB commented, “We would agree is that given a generally respectable but hardly stellar set of incoming economic data since the April FOMC meeting, Mr. Bernanke is not going to push back hard against his May 20th Q&A comment to the JEC that, “We could in the next few meetings take a step down in our pace of purchases."

In going on to discuss the FOMC Meeting in greater detail, NAB added, “Bernanke is nevertheless likely to stress that any such move still remain dependent on the incoming economic news, and is unlikely to give an expected date at which the process may commence (unless of course, a decision is made today to start scaling back QE – unlikely in our view, since that would undoubtedly amount to a fresh shock for markets)” In conclusion, NAB went on to say Bernanke may mention that even if tapering is on the table, it doesn’t mean the actions can’t be reversed should economic conditions warrant further monetary accommodation from the Federal Reserve.