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Analysts at UBS revised up euro forecast Tuesday, February 14, 2012 - 10:30 Analysts at UBS raised 1-month forecast for euro from $1.2000 to $1.3000 and increased the 3-month projection from $1.1500 to $1.2500. The specialists also lifted up their 3-month forecast of USD/JPY’s rate from 75.00 to 77.00. According to UBS, short-term risks diminished: the situation in the euro zone’s banking sector will improve due to ECB’s Long-term liquidity operations (LTLO) operations, while the threat of a disorderly Greek default for now subsided. Chart. Daily EUR/USD Analysts at UBS revised up euro forecast // FBS Markets Inc. Be successful with FBS

Bank of Japan increased asset purchases Tuesday, February 14, 2012 - 10:00 Japanese yen declined against US dollar as the Bank of Japan increased its asset-purchase program by 10 trillion yen ($128 billion) to 65 trillion yen and set near-term inflation target at 1%. The move was generally unexpected. The BOJ left its benchmark rate at 0.1% (in line with forecasts). According to the BOJ statement, the central bank’s goals are to “clarify its monetary policy stance and to further enhance monetary easing” to “overcome deflation and achieve sustainable growth with price stability.” Some experts, however, criticize the BOJ for yielding to political pressure. The increase in the asset-purchase facility will be used to fund purchases of more government bonds. Japanese central bank decided to support national economy which contracted in the final quarter of 2011 by 2.3% (y/y), data released yesterday showed. The BOJ also signaled its resolve to take further action to beat deflation. Nationwide core CPI fell by 0.1% (y/y) in December, the third straight month of decline. Prices haven't risen by at least 1% for any year since 1997. It’s also necessary to point out that as US Federal Reserve last month set an inflation target and extended its commitment to near zero rates. As a result, pressure on the BOJ strengthened encouraging it to make a move. Analysts at Sumitomo Mitsui think that the impact on yen’s long-term uptrend will be limited. Specialists at Mitsubishi UFJ Morgan Stanley Securities claim that the BOJ still has further easing options left, such as increasing the amount of assets it buys and buying JGBs with longer maturities. Economists at Credit Agricole think that the BOJ's decision will help to keep JGB yields low and make yen weaken in the short term. However, the specialists aren’t sure that the impact will be sustained. There needs to be probably more to be done, the buying of JGBs would need to be more intense, says Credit Agricole. The pair USD/JPY rose above 78 yen mark. Resistance for the greenback lies at 78.29 yen (maximums of the late November and January 25). Above this level the upside momentum will increase. Chart. Daily USD/JPY Bank of Japan increased asset purchases // FBS Markets Inc.

Moody’s downgraded European nations Tuesday, February 14, 2012 - 08:00 The single currency declined versus the greenback for the third day. Euro fell after Moody’s Investors Service downgraded several European nations. US dollar, on the other hand, strengthened versus all of its major counterparts as the market’s risk sentiment deteriorated. Moody’s cut Spain’s rating from A1 to A3, Italy’s – from A2 to A3 and Portugal’s one – from Ba2 to Ba3 with negative outlooks. The ratings of Slovakia, Slovenia and Malta were also lowered with negative outlooks. In addition, the agency said it may strip France, Austria and the UK of their top Aaa ratings. The rating of EFSF (European Financial Stability Facility) was retained with stable forecast. According to the Moody’s economists, the downgrade was motivated by the uncertainty over the euro area’s prospects for institutional reform of its fiscal and economic framework and the resources that will be made available to deal with the crisis. The euro zone’s finance ministers meet tomorrow to discuss a second 130 billion-euro ($171 billion) aid package for Greece which managed to reach parliamentary approval of austerity measures. Analysts at Mizuho claim that “the ratings agencies behind the curve as the risks have actually been falling in Europe. There may be worries that countries cutting fiscal spending may drag on their economic growth, but the concerns aren't new and the downgrade should have minimal impact on market sentiment.” Investors’ attention will be also focused on Italian bond auction today (bonds due in 2014, 2015 and 2017) and debt auctions of Spain, Belgium and Greece (bills) and the Netherlands (bonds maturing in 2017). The pair EUR/USD fell from last week’s maximums above $1.3300 to the levels in the $1.3135 area. Chart. Daily EUR/USD Moody

JPMorgan: buy euro against franc Monday, February 13, 2012 - 14:00 Analysts at JPMorgan recommend buying the single currency versus Swiss franc. In their view, the pair EUR/CHF will rise to 1.23 in the medium term. The specialists point out that in Switzerland deflationary forces are mounting, while the economy is close to recession. The bank reminds investors of weak January manufacturing PMI (the indicator declined from 49.1 to 47.3) and high unemployment rate. According to JPMorgan, the SNB will defend the 1.20 floor or possibly to raise it. Chart. Daily EUR/CHF JPMorgan: buy euro against franc // FBS Markets Inc.

Different comments on Greece and euro Monday, February 13, 2012 - 12:15 UniCredit: if Greece leaves the euro area, it would be a disaster for Greek society, while for the rest of Europe it won’t matter much in the longer term. However, the majority underestimates the risks of Greek default to the global financial markets in general and other European nations in particular. Bank of Nova Scotia: as Greek parliament approved austerity measures the pressure on euro may ease in the short term. Societe Generale: speculative positioning data shows that short euro positions are being reduced, but not enough to spark a substantial risk rally. EUR/USD will struggle to break last week's maximum at $1.3330. Morgan Stanley: EUR/USD correlation with the market’s risk sentiment will break down this year. The single currency will remain under pressure with the ECB’s accommodative increase of euro’s supply, recessionary growth and political uncertainty. Sell euro at $1.3250, stopping at $1.3300 and targeting $1.2390. Credit Agricole: so much good news is already reflected in the value of the single currency, so even if there is some form of debt deal and second bailout package for Greece EUR/USD’s advance will be limited. Chart. Daily EUR/USD Different comments on Greece and euro // FBS Markets Inc.

Watch Fed’s meeting minutes on Wednesday Monday, February 13, 2012 - 12:00 To get insight about the Federal Reserve’s stance toward further quantitative easing one has to watch the Fed's January meeting minutes released on Wednesday. The minutes will show how the opinions of the central bank’s officials are divided: some FOMC members may have seen the need for additional monetary easing. This time the central bank for the first time will provide "qualitative" details on officials' views on the Fed's near-record $2.9 trillion balance sheet. Last month the Fed revealed its intentions of keeping the rates near zero until the end of 2014 but gave no details on how it should handle its asset holdings. The argument against QE3 is improved labor market situation (in January unemployment rate declined to 8.3%). However, some experts think that US economy won’t gain enough growth pace to satisfy the Fed. Watch Fed

UK economic forecasts: update Monday, February 13, 2012 - 11:15 The Confederation of British Industry (CBI) lowered its 2012 forecast for the UK economy from the 1.2% (November 2011 estimate) to 0.9%. Although Britain’s GDP contracted by 0.2% in the final 3 months of last year, the specialists think that the nation will manage to avoid technical recession or, in other words, 2 consecutive quarters of negative growth. According to the CBI, British growth will accelerate to 2.0% in 2013. The economists say that in the quarterly basis growth will remain fragile in the first two quarters of this year (0.2%, 0.2%), improving modestly in the second half of the year (0.6%, 0.5%), as inflationary pressures ease. The latest forecasts show inflation falling back towards target levels (2.2%) in the fourth quarter of 2012 and then remaining close to the BOE’s 2.0% target throughout 2013. The growth will be driven by trade and business investment. Household consumption, however, will be under pressure from modest wage growth and continuing high unemployment. Later this week in the UK On Wednesday the Bank of England will publish its latest quarterly Inflation Report with update forecasts for growth and inflation. The BoE Governor Mervyn King will give press conference the same morning. As the Monetary Policy Committee (MPC) increased asset purchases by 50 billion pounds to 325 billion pounds on Thursday, the forecasts might continue showing lower inflation in the medium term. On Tuesday the Office for national Statistics will release January inflation data. The CPI growth is expected to slow from 4.2% (y/y) to 3.6%. King will have to write a letter to the Chancellor, explaining why inflation is more than one percentage point above the 2% target. Chart. Daily GBP/USD UK economic forecasts: update // FBS Markets Inc.

UBS: short-term outlook for USD/JPY Monday, February 13, 2012 - 10:15 Analysts at UBS note that the greenback has posted its biggest weekly advance versus Japanese yen since the Bank of Japan’s record intervention at the end of October 2011. USD/JPY rose from the 76.50 area on Monday to Friday’s peak at 77.80 yen. The pair went up due to the general strengthening of US dollar as well as on the speculation of potential intervention of Japan’s monetary authorities. Never the less, the specialists claim that USD/JPY may find itself under pressure in the upcoming weeks. According to UBS, the outlook for the pair is mixed: on the one hand, the economists expect inflows into yen from semi-annual coupon payments of US T-bonds holders and some kind of repatriation due to the Japanese financial year-end; on the other, the Bank of Japan may further ease its monetary policy. The bank thinks that USD/JPY isn’t likely to rise above 80 yen unless US Treasury yields can break significantly higher. Chart. Daily USD/JPY UBS: short-term outlook for USD/JPY // FBS Markets Inc.

CFTC trader positioning data Monday, February 13, 2012 - 09:15 The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that: • Euro shorts declined for the second consecutive weak. Net shorts account for around 141K contracts, down from the previous week’s total of 158K. • British pound shorts increased from 26K contracts on January 31 to 33K contracts on February 7 after 2 weeks of improvement. • Japanese yen net longs declined from 57K contracts reported on January 31 to 55K as the data on February 7 showed. Yen speculative positions are still just below their maximum in over a year which was reached on January 10 when contracts surpassed the August 2 level of 59K. • Swiss franc net shorts declined from 11K net short contracts on January 31 to 9.7K contracts on February 7. The shorts decrease for the third consecutive week. • US dollar long positions were reduced from a total long position of $14.22 billion on January 31 to $10.63 billion on February 7. It’s necessary to note that the figures cited above are always a week old at the time of their release. Never the less, CFTC data gives a good oversight into how the market is positioned and if/how these positions are being unwound. CFTC trader positioning data // FBS Markets Inc.

Morgan Stanley: sell GBP/USD Wednesday, February 8, 2012 - 11:30 Analysts at Morgan Stanley recommend investors selling British pound versus the greenback. The specialists advise to place stops for GBP/USD at $1.61 and look for the pair’s decline to $1.5460. According to the bank, sterling will be under pressure due to 2 factors: UK economic weakness and Bank of England’s quantitative easing – Morgan Stanley expects the BOE to announce tomorrow another 50 billion pounds of bond purchases. Chart. Daily GBP/USD Morgan Stanley: sell GBP/USD // FBS Markets Inc. Be successful with FBS

Euro’s in the positive zone, markets await Greece Wednesday, February 8, 2012 - 09:15 The single currency is little changed to the upside versus the greenback on the speculation that Greek officials and creditors worked on the final draft of an agreement on budget and structural measures needed to free up a second aid package. Bloomberg reports that Charles Dallara, managing director of the International Institute of Finance, Deutsche Bank AG Chairman Josef Ackermann and Jean Lemierre, a senior adviser to the chairman of BNP Paribas SA, had “constructive” talks with Greek Premier Papademos and Finance Minister Evangelos Venizelos. A government spokeswoman said a meeting between Papademos and the leaders of the three parties supporting his government was postponed to tomorrow morning. Analysts at Mizuho claim that “Greece is a big part of Europe’s debt crisis, so a step forward to its resolution is seen favorably in the near term, which is spurring the unwinding of short positions on the euro.” The specialists think that euro may rise to $1.34. Economists at Credit Agricole, however, warn about the possibility of “buy on rumors, sell on facts” outcome. Specialists at Commerzbank think that the key resistance level for the pair EUR/USD lies at $1.3280. If euro manages to break above this point above this point, it will get chance to strengthen to $1.3436 and $1.3627 (50% and 61.8% Fibonacci retracement targets of the pair’s decline from October maximum to January minimum). Next resistance will be found at $1.3334 (100-day MA). Chart. Daily EUR/USD Euro Be successful with FBS

The “art” of forecasting and Aussie’s prospects Wednesday, February 8, 2012 - 07:45 24 out of 27 economists surveyed by Bloomberg News expected the Reserve bank of Australia to cut interest rates. The media widely spread these expectations, so the cut was widely seen as a sure thing and the central bank’s staying on hold was surprising for the market. One has to understand that the analysts’ forecasts are no more than best guesses given available information. The predictability of future in such complicated environment as the modern globalizing world is a tricky and highly disputable thing. It’s necessary to remember about uncertainty. Don’t rush to comfort yourself with estimates and figures. Surely you have to take the figures into account, but don’t be fooled by the data stream. Already much was said about the human nature of the forecasters: once an economist has made an assumption, he or she is tempted to interpret all new data in the way which would justify his already existing forecast. Yesterday’s situation is a good example: some of the market strategists were pessimistic about Australia’s labor market as payrolls contracted; others ignored this piece of information focusing on steady unemployment rate. That’s how 2 different points of view derive from the single data set. The conclusion is simple enough: analyze all available data before drawing any forecasts and be flexible in your forecasting. Anyway, let’s back to Australia. Now that the RBA has avoided easing, it’s time to elaborate a trading strategy which would suit the moment. Analysts at BMO Capital are bullish on Aussie thinking that RBA’s staying on hold provides enough reason to expect AUD/USD to keep growing. The specialists also think that China may reduce reserve requirements encouraging risk appetite. In addition, the Fed plans to keep rates low until the end of 2014. As a result, BMO expects Aussie to rise to $1.0925. Chart. Daily AUD/USD The Be successful with FBS

USD/JPY gained on Japanese data Wednesday, February 8, 2012 - 07:00 The greenback advanced versus Japanese yen climbing above 77 yen on the news that Japan’s current-account surplus dropped in 2011 to a 15-year minimum. According to the nation’s Finance Ministry data, current-account surplus declined last year by 44% from the previous year to 9.63 trillion yen ($125 billion), the minimal level since 1996. Japan's current account surplus contracted for the tenth straight month in December to 303.5 billion yen (by 74.7% y/y) before seasonal adjustment versus the forecast of 331.4 billion yen surplus. Analysts at Credit Suisse claim that Japan’s current-account balance will turn out to be a deficit in January, so yen will naturally weaken. It seems that Japanese MOF is changing its intervention tactics in favor of stealth (unannounced) interventions rather from the shock-and-awe tactics with large amounts of yens sold which it used before. Yesterday the country’s MOF reported today that the nation sold 1.02 trillion yen ($13.6 billion) against the dollar in markets on the first four days of November in addition to an 8.07 trillion-yen sale on October 31 and expressed intentions to fight the appreciation of the national currency. Despite the advance of USD/JPY one has to be cautious because large players are likely getting ready to sell on the rallies. Chart. Daily USD/JPY USD/JPY gained on Japanese data // FBS Markets Inc. Be successful with FBS

Greek deal speculation encourages euro Tuesday, February 7, 2012 - 14:45 The single currency surged versus the greenback setting new daily maximum at $1.3197 after Reuters reported that “Greek government is drafting agreement on bailout deal to be put to political leaders for approval later today” citing the words of the unnamed government official. Analysts at BNP Paribas claimed that “the whole focus on austerity measures is that it’s the prerequisite for the second bailout package. It would be a step closer to everything fitting in to place. The market has reacted very positively.” Resistance for EUR/USD if found at $1.3200 and $1.3225 (January 30 maximum). Chart. H1 EUR/USD Greek deal speculation encourages euro // FBS Markets Inc. Be successful with FBS

Will the ECB lower rates? Tuesday, February 7, 2012 - 13:45 The European Central Bank meets this Thursday. The majority of the economists expect the ECB to keep the borrowing costs unchanged. Some specialists, however, think that the central bank may cut its benchmark rate from the current level of 1%. The arguments for the ECB’s staying on hold: better-than-expected key economic indicators released so far in the euro zone, successful bond and T-bill auctions in Germany and peripheral nations, positive impact of ECB’s LTRO which helped to increase liquidity. The arguments for the ECB’s rate cut: austerity measures affecting the European economy and creating the threat of the region’s recession, the expansion of the central bank’s balance sheet as a result of the LTROs, unresolved negotiations in Greece. Analysts at UBS think that the ECB will reduce interest rates. In their view, EUR/USD will stay under pressure ending 2012 at $1.1500. Chart. Daily EUR/USD Will the ECB lower rates? // FBS Markets Inc. Be successful with FBS

Jordan: SNB won’t allow franc to strengthen Tuesday, February 7, 2012 - 13:15 ТThe Swiss National Bank’s interim president Tomas Jordan said today that the central bank will not tolerate a breakdown of the CHF 1.20 threshold. According to Jordan, the SNB is more than ever “committed to defending the cap” and can’t allow further appreciation of the national currency as strong franc affects Switzerland’s economy. To do that the central bank is ready to buy unlimited amounts of foreign currencies. The main risks come from further escalations of the euro zone’s debt crisis. The pair EUR/CHF is trading in the positive zone, right below the daily peak at 1.2087. Resistance for euro is found at 1.2109 (January 25 maximum) and 1.2128 (January 13 maximum). Support for the pair lies at 1.2053 (200-day MA) and 1.2028 (February 1 minimum). Chart. H1 EUR/CHF Jordan: SNB won Be successful with FBS

Japan conducted stealth intervention in November Tuesday, February 7, 2012 - 12:30 Japanese yen declined versus US dollar and the single currency as the government data showed that Japan conducted stealth intervention in November in order to weaken the national currency. Stealth intervention is carried out without any official announcement from the finance ministry. Japan’s Ministry of Finance reported today that the nation sold 1.02 trillion yen ($13.6 billion) against the dollar in markets on the first four days of November in addition to an 8.07 trillion-yen sale on October 31. Finance Minister Jun Azumi said he won’t rule out any options to curb the currency’s appreciation. Analysts at Bank of Tokyo-Mitsubishi UFJ claim that yen’s drop reflects the increasing risks that the Japanese authorities may intervene again to make yen depreciate. Specialists at Commerzbank think, however, that interventions won’t reverse major USD/JPY downtrend as their effect seems to be short-lived. Chart. Daily USD/JPY Japan conducted stealth intervention in November // FBS Markets Inc. Be successful with FBS

UBS on SNB’s policy options Tuesday, February 7, 2012 - 07:45 There are 2 things to note about Swiss franc: 1) Hopes that that Swiss National Bank lifts up the floor for EUR/CHF from 1.2000 to 1.25/3000 in order to fight deflation crushed on December 15, when the SNB left the peg unchanged. 2) The market started worrying about the sustainability of the peg after former central bank’s President Hildebrand resigned. Strategists at UBS claim that although the SNB interim president Tomas Jordan pledged to defend EUR/CHF minimum, the central bank is under pressure due to a lot of stops placed below the threshold: if franc strengthens, it may be very difficult for the SNB to act against the market. However, the central bank will try to do its best as its credibility is at stake, thinks UBS. The specialists think that the SNB will lift up the floor in the second half of 2012 to 1.3000. The bank recommends watching Switzerland’s CPI figures due on Monday. Chart. Daily EUR/CHF UBS on SNB Be successful with FBS

Greece: negotiations seem endless Tuesday, February 7, 2012 - 06:45 The single currency is under pressure versus the greenback, unable to resume recovery from January minimum at $1.2625. The pair EUR/USD has so far been consolidating in the $1.3035/1.3225 area. The bias is still bullish. On the upside, if euro rises above $1.3233, it may get to $1.3375 (December 12, 2011, maximum). On the downside, below support at $1.3075, the pair may drift to $1.2856/75 (December 29, 2011, minimum/January 2011 minimum). Investors are worried that the Greece’s policymakers may fail to reach an agreement on terms for a second aid package, which is a condition for the second bailout. Today Greek Prime Minister Lucas Papademos will resume talks with the heads of 3 political parties in his interim coalition government. In addition, Papademos begins today a second round of negotiations with the Troika – the European Commission, the ECB and the IMF. Analysts at Westpac think that there will be a lot of problems and shocks before the Greek situation is resolved, so they are bearish in euro. The single currency lost 4.5% during the last 3 months. Chart. Daily EUR/USD Greece: negotiations seem endless // FBS Markets Inc. Be successful with FBS

John Taylor is bearish on US dollar Monday, February 6, 2012 - 12:45 John Taylor, the founder of FX Concepts, the world’s largest currency hedge fund, is bearish on US dollar after the Fed extended their pledge to keep interest rates close to 0 until late 2014 and signaled that it’s prepared for additional quantitative easing on January 25. The specialist is more bearish on US currency than on the European one. “Everybody in the market is sure that whenever the dollar looks strong, Bernanke will come up with another idea to make it weak”, says Taylor. In his view, EUR/USD will end the year at the parity level. The economist also expects the greenback to depreciate versus Japanese yen even if it is temporarily boosted by the bank of Japan’s dollar purchases. Taylor agrees that Japanese central bank is likely to intervene in 75 yen area, but thinks that traders will wait until USD/JPY is pushed up by the interventions and then start selling the pair again. John Taylor is bearish on US dollar // FBS Markets Inc. Be successful with FBS

Bank of England may announce additional QE Monday, February 6, 2012 - 12:15 On Thursday at 12:00 p.m. GMT the Bank of England’s Monetary Policy Committee announces its decision. According to the consensus forecast, the BoE will increase its asset purchase program by 50 billion pounds to 325 billion in order to avoid recession. The central bank is expected to hold the key interest rate at the record minimum of 0.5%. UK GDP contracted by 0.2% in the fourth quarter of 2011. Recession is defined as 2 successive quarters of falls. Although we’ve seen some inspiring data in January (positive PMI from the manufacturing and services sector released last week), it’s too early to speak about recovery. British economy is strongly connected with the euro area and the problems of the latter are still unresolved. As Britain’s economic outlook looks rather grim, the possibility that inflation will undershoot the 2% target in the medium term seems rather high. As a result, this will allow the nation’s central bank to conduct additional monetary stimulus. Analysts at UBS “expect the MPC will agree to buy another 50 billion pounds of government bonds. The PMI releases are only one month's data and fiscal austerity is likely to keep holding back UK growth. Thus we continue to see GBP/USD being over-extended at current levels of $1.58.” Chart. Daily GBP/USD Bank of England may announce additional QE // FBS Markets Inc. Be successful with FBS

Short-term outlook for euro: analysts’ comments Monday, February 6, 2012 - 11:30 Analysts at Morgan Stanley are bearish on the single currency. In their view, the pace of euro’s decline will be determined by whether Greece can meet the restructuring and austerity claims laid out by the Troika. So far, many of the major political forces in Greece have rejected demands to reduce minimum wages down to Portugal's levels, fearing that the economy would move further into recession, notes the bank. Strategists at Commerzbank also think that EUR/USD will likely weaken as Greek situation remains unresolved. In their view, the area below $1.3050 could become critical as it could increase worries that the 10-day trading range between $1.3030 and $1.3230 will break on the downside. Specialists at ING claim that the pair may test support at $1.3000. According to the bank, Greece will be eventually reach solution, but only after the stressful period of uncertainty. Euro will likely test the downside levels, says ING. However, the analysts warn that there’s the risk of a short-squeeze to the $1.3300 area. Chart. Daily EUR/USD Short-term outlook for euro: analysts Be successful with FBS

USD/JPY: technical levels, intervention risk Monday, February 6, 2012 - 10:00 Analysts at UBS think that Japan’s monetary authorities will intervene if USD/JPY dives below 75 yen. At the same time, it seems that until the critical level is tested, Japan will use only verbal interventions, claims Credit Agricole. Support for the pair is situated at 76.42/03 (January 31 maximum/February 1 minimum), while resistance lies at 76.87 (38.2% Fibonacci retracement of the decline from January 25 to February 1) and 77.15 (Ichimoku base line and 100-day MA). Chart. Daily USD/JPY USD/JPY: technical levels, intervention risk // FBS Markets Inc. Be successful with FBS

GBP/USD: technical levels Monday, February 6, 2012 - 09:30 British pound may decline versus the greenback to $1.5620/43 as the bears are currently trying to push the pair below Friday’s minimum of $1.5749. Support for GBP/USD lies at $1.5705 (February 1 minimum) and $1.5600. The short-term outlook, however, still remains bullish. If sterling manages to get above $1.5883 (last week’s maximum), it will be able to climb to $1.6000 and $1.6165 (October 2011 high). Chart. Daily GBP/USD GBP/USD: technical levels // FBS Markets Inc. Be successful with FBS

CFTC trader positioning data Monday, February 6, 2012 - 08:30 The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that: • Euro shorts declined, but remained excessive. Net shorts account for around 158K contracts, down from the previous week’s total of 171K. • British pound shorts fell from 31K contracts on January 24 to 26K on January 31. Sterling positions are improving for the second week in a row. • Japanese yen net longs increased from 44K contracts reported on January 24 to 57K on January 31. Yen speculative positions are just below their maximum in over a year which was reached on January 10 when contracts surpassed the August 2 level of 59K. • Swiss franc net shorts declined from 13K contracts on January 24 to 11K net short contracts on January 31. The shorts decrease for the second consecutive week. • US dollar longs were reduced by 1/3rd but overall positioning is not yet very significant, at around 100K contracts. Non-commercial futures traders, usually hedge funds and large speculators, decreased their total US dollar long positions from a total long position of $20.09 billion on January 24 to $14.22 billion on January 31. It’s necessary to note that the figures cited above are always a week old at the time of their release. Never the less, CFTC data gives a good oversight into how the market is positioned and if/how these positions are being unwound. CFTC trader positioning data // FBS Markets Inc. Be successful with FBS