Talking Points
• Japanese Yen: Weighed by Risk Appetite
• Pound: 4Q GDP Expands at Faster Pace
• Euro: Consumer Prices Rise In-Line With Expectations
• U.S. Dollar: Preliminary 4Q GDP, Existing Home Sales on Tap

British Pound Fails to Benefit From Enhanced 4Q GDP Report, U.S. Dollar Mixed

The British Pound tumbled lower during the European trade even as the preliminary 4Q GDP report reinforced an improved outlook for the U.K.,...

Line Changes:
None

Position Changes:
None. Short

Order Changes:
Stops on shorts lowered to 10417

Comments:
Just a reminder (and notice to new readers)
This is not a trend following thread!

Forex futures and options markets have aggressively bet on a US Dollar recovery against the Euro and other key counterparts, leaving scope for a short-term correction in the context of a broader Greenback recovery. Indeed, CFTC Commitment of Traders data shows Non-Commercials hold a record notional net-short position in the Euro against the US Dollar, leaving relatively little room for further selling.

Forex futures and options markets have aggressively bet on a US Dollar recovery...

Line Changes:
Activated green Stay Line as stop

Position Changes:
Short 25% net allocated at ~ 10292

Order Changes:
Stop loss on position at 10438

Quite a session of trade in Europe, with many market participants feeling the burn of the nasty whipsaw price action. Initially, it appeared as though we could be on the verge of seeing a fresh wave of corrective upside in currencies, with the break back above the 10-Day SMA in Eur/Usd triggering a wave of currency buying just ahead of the European open.

MORNING SLICES

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