The FT leads with the story that speculators have built record large short-positions in the euro, through which they speculate on a fall in the euro-dollar exchange rate. Data from the Chicago Mercantile Exchange as of Feb 2 show 40,000 futures contracts with a total value of $7.6 bn. The paper says this is the largest short position ever built up on any currency.

Marketwatch (aka Calculated Risk) has a story pointing to the spillover of the crisis to the Iberian peninsula. According to CMA DataVision, the spread on five-year Portuguese credit default swaps rose from 227bp late Friday to 244.06bp yesterday. The five-year Spanish CDS spread rose from 166.5 to 172.9bp. And the Greek CDS spread widened further, from 407 to 426.