Discussion for trading FOMC Meeting about $85 Billion Tapering

Hi Everyone,
So I am a “News Trader” and recently I lost few of my money on trading Non Farm Payrolls and US GDP due to unfair market reaction as market gone totally against me even though US data was very good, still Euro rose much much higher… So now I am preparing myself for trading FOMC Meeting on 17-18 December, I would like to request experienced traders to share their thoughts.

[B]US $85 Billion Asset Purchase Tapering[/B]
As currently this is the only news that everyone is waiting for, and after the release of upbeat US Data, there is 50-50 chance of tapering this month, however most of people say tapering is not possible this year, nothing can be predicted as of now but I want to discuss how can we trade this news effectively ??

There are two possible scenarios, 1–> They will Taper this month. 2–> They will not Taper this month.

[B]QUE1-What if FOMC Announces tapering this month ?[/B]
If FOMC reduces its $85 Billion program to even $65 Billion Bond Purchases from now onwards, what will be its outcome on Markets ?? As everyone says if tapering happens this month, that will make USD very strong, as that is a sign of economic recovery, So, Is it a clear signal to [B]SELL EUR/USD, GBP/USD as soon as FOMC confirms Tapering ??[/B] Or is there any other complex thing hidden inside it ??

[B]QUE2-What if FOMC doesn’t taper this month ?[/B]
According to my knowledge, if Fed doesn’t taper this month, that will keep USD weaker, and EURO and GBP are already very strong, that may allow them to continue there rally more upside, But i will not trade anything in this type of situation, as i think EURO and GBP are already too High, and Overbought conditions can limit much further upside…

Please share your valuable thoughts with everyone…
Happy Trading…

HI. Can you please help me to explain why tapering asset purchases will lead to higher borrowing costs for consumers and businesses? Thanks a lot