JPY is the biggest loser due to escalating speculation that North Korea will test-launch more missiles on the west coast. FX markets immediately selloff the Japanese currency on any signs of skirmishes involving the Koreas. Euro remains sluggish across the board on a fresh jump in Greek-German yield spread, hitting a new record high of 360 bps, well above the 320 bps in March 2009 when EURUSD stood below 1.25. The sub-1.40 break is a prelude to the 1.38 target expected to occur by mid Feb. GBP regains the 1.6250 resistance, now eyeing 1.6280s. Shorting cable has proven a challenging endeavour as the currency hardly follows up on its declines without rebounding 40-50%. Yesterday's FOMC dissent by Kansas Fed's Hoenig should help provide the USD with an improving foundation. USDX remains above its 200-day MA of 78.45. USDCAD risks testing 1.0510.