The second month of 2016 brought some very interesting developments in the Forex market. We’ve had pairs sitting in flats for the entire month, and currencies which were the clear winners and clear losers of the month.

The mail losers, somewhat expected, were the GBP and the JPY. Shorting the Yen seems to be everyone’s go-to trade of the beginning of the year, due to the Bank of Japan’s new interest rate decisions. The short was a particularly good idea against currencies like the AUD or NZD, to take full advantage of the interest rate differential. After bottoming twice in February, the USD/JPY is also keen on rising from the 110 levels close to 113 or even 115.

The GBP was another big loser of the month. The Brexit was not seen well by investors, who ditched their pound positions as quickly as possible. The GBP is currently sitting at record lows against the U.S. dollar. The 1, 45 line was broken and the currency pair is currently sitting around 1, 40, a level which hasn’t been seen since the 2008-2009 period. With no good economic data and no conclusion to the Brexit crisis, the pound might be in for a difficult year.

Everyone’s favorite pair, the EUR/USD sat rather quietly in February. Week economic data from the U.S. combined with an unsure business climate in Europe caused the pair to have a spike up to 1, 13 in early February, after which it stabilized around the 1, 10 – 1, 11 levels. The pair will probably remain in this flat until a clear trend is set, either by the FED or the ECB.

To sum up, a great idea would be to avoid the main pairs in the immediate future. Since there is a lot of uncertainty involving the Dollar, Euro or Pound, you might be in luck trading more exotic pairs. Always be on the lookout for news, since the economic calendar is packed in the next period, and remember to watch out on the 15th and 16th of March. The next Fed meeting takes place then.