Forex Update

G7 meeting on Feb 9 and 10. Consensus for the coming meeting will be a non event although French Fin confirmed that weakness on yen is on the agenda.
This however is not supported by US Treasury Sec Paulson with his comment that yen is in line with fundamental.
Hedge Fund transparency will be the key agenda with carry trade being the focus.
A quick unwind of carry trade could led to global credit crunch and it will be the aim of G7 to reduce the risk of that.