Currency Analysis

by Paul Kavanaugh, PFGBEST

1-888-439-6033

pkavanaugh@pfgbest.com

-Seventeenth straight week of net long US dollar bets.

-Euro zone debt crisis continues to dominate currency news

-Large Speculators increase net short positions in Euro to another all-time record high

-Euro hit lowest level against US dollar since August 25th, 2010.

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CFTC data released Friday January 13th shows IMM currency speculators increased bets net short the Euro as the single currency approached the lowest levels since August of 2010 on Euro zone debt concerns. The most recent Commitments of Traders data shows some significant percentage changes in speculative positions in the currencies from the prior week including the following:

Commitments of Traders Data

(Non-Commercial Net Position Data thru Tuesday January 10th)

A major 22.50% increase from 23,371 to 28,649 contracts net short of the Canadian dollar;

A minor 0.21% decrease from 13,355 to 21,097 contracts net short of the Swiss Franc;

A building 12.39% increase from 31,899 to 35,853 contracts net short of the British Pound;

Yet another increase of 10.49% from 138,909 to 155,195 contracts net short of the Euro;

A small 5.62% increase from 56,481 to 59,657 contracts net long of the Japanese Yen;

And a sizable 15.01% increase from 46,537 to 53,526 contracts net long of the Australian dollar.

(Source CFTC.gov)

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There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.