ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING

George, what currencies will the Dollar perform best against this year?

GEORGE DOWD, HEAD OF CHICAGO FOREIGN EXCHANGE, NEWEDGE (ENGLISH) SAYING:

Yes so it's boring to say I think but I'm really more focused on the Euro and the Yen than anything overly exotic. And I think that there's going to be two different ways those play out but. But my view is you probably want to trade the Dollar strong trade against the Euro in the run-up to the European parliamentary elections in May. I think we could see some Euro weakness. My personal view is we can get down into the sort of 1.15, 1.18 level and that's from kind of the high 1.30s which I think is a pretty aggressive move and probably non-consensus. The technical setup in that market is slightly long of Euro right now and maybe a little bit short Dollar which could add some fuel to the fire. The other one is Dollar/Yen. Dollar/Yen has had a pretty aggressive move up. I think we can go higher but I think we're going to have to unwind some of the long Dollar/Yen positions first. To me that's going to be a little bit of a two-way trade from this kind of 103, 104 level. But personally I favor up towards 115 and 120 towards mid to late 2014. And again the background for that is, just like I mentioned, that we're going to see some semblance of tighter policy out of the United States. And I think we're going to see sort of maintaining an easing bias or a general ample liquidity in Japan.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING

How about emerging market currencies? They took it on the chin against the Dollar in 2013. What are your expectations in EM?

GEORGE DOWD, HEAD OF CHICAGO FOREIGN EXCHANGE, NEWEDGE (ENGLISH) SAYING:

Yes, so in emerging markets without going into any particular currency pair, I think in general the trend is going to be Dollar higher. So I think you saw big flows into some of these emerging market currencies and economies in the search for yield. And if we start to yields normalize in the US i.e. rates back up a little bit, there's less of a reason to go to some of these more exotic spots and to play around in the emerging currencies. It's just they're not as attractive on a yield basis and we can get that in a more stable economy. And if the US yield starts to back up I just think you'll start to see number one, a reluctance to go into those economies in the first place searching for yield, and number two, any money that's already in there are looking for yield coming out.