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Top Currency Trades for 2011

With the European debt crisis and currency tensions with China, foreign exchange was the trade of 2010.

So what's ahead in this volatile market in the new year? Boris Schlossberg, director of currency research at GFT Forex, revealed his top 3 trades for 2011:

1. Long Euro/Short Pound: At this point, Schlossberg thinks the sell-off in the euro is overdone. The bet on short euro is a bet that the Euro Zone collapses, he explained. But China (probably) won't allow that to happen, he said, because they don't want to go back to a world where the U.S. dollar is the only reserve currency.

And - if an economic downturn were to occur, Schlossberg thinks it would hit the British pound faster than other European currencies, including the euro.

2. Long U.S. Dollar/Short Japanese Yen: Going into 2011, Schlossberg thinks the U.S. economy looks "pretty good." Jobless claims are lower, which suggests labor markets are going to pick up - and that should drive U.S. markets higher. In turn, the USD should go higher versus the yen.

3. Short Aussie/Swiss: Australia has been a great trade over the past few years, but Schlossberg thinks its overdone. In the meantime, the Swiss Franc has held up very well and he thinks it could be a great trade against the Aussie.

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Trader disclosure: On Dec. 23, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Matt Hougan owns (VWO). Jon Najarian owns (ADBE), is short (ADBE) calls. Jon Najarian owns (BBT), is short (BBT) calls. Jon Najarian owns (BBY), is short (BBY) calls. Jon Najarian owns (CSCO), is short (CSCO) calls. Jon Najarian owns (GS), is short (GS) calls. Jon Najarian owns (MSFT), is short (MSFT) calls. Jon Najarian owns (ODP) calls. Jon Najarian owns (POT), is short (POT) calls. Jon Najarian owns (RHT), is short (RHT) calls. Jon Najarian owns (VZ) call spreads. Jon Najarian owns (EXC) puts. Jon Najarian owns (ANW). Jon Najarian owns (IBM), is short (IBM) calls. Jon Najarian owns (SD), is short (SD) calls. Jon Najarian owns (V), is short (V) calls. Jon Najarian owns (DF). Karen Finerman owns (AAPL), (BAC), (GOOG), (JPM) and (MSFT).

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DENNIS GARTMAN
Funds Managed by Dennis Gartman are short the Euro
Funds Managed by Dennis Gartman are short the Yen
Funds Managed by Dennis Gartman are long Gold
Funds Managed by Dennis Gartman are long Crude

KAREN FINERMAN
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (ARO)
Finerman's firm owns (AVP) calls
Finerman's firm owns (BBY)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (YUM)

ANTHONY SCARAMUCCI
Scaramucci and Skybridge Capital own (AAPL)
Scaramucci and Skybridge Capital own (C)
Scaramucci and Skybridge Capital own (DELL)
Scaramucci and Skybridge Capital own (EBAY)
Scaramucci and Skybridge Capital own (GS)
Scaramucci and Skybridge Capital own (NKE)
Scaramucci and Skybridge Capital own S&P 500
Scaramucci and Skybridge Capital own USD
Scaramucci and Skybridge Capital Own (JNJ)
Scaramucci and Skybridge Capital Own (KIRK)

ZACAHRY KARABELL
Karabell and River Twice Capital own (AAPL)
Karabell and River Twice Capital own (C)
Karabell and River Twice Capital own (FCX)
Karabell and River Twice Capital own (FXI)
Karabell and River Twice Capital own (GE)
Karabell and River Twice Capital own (GS)
Karabell and River Twice Capital own (POT)
Karabell and River Twice Capital own (RIMM)
River Twice Capital Owns (SQM)
River Twice Capital owns (CF)
River Twice Capital owns (CSCO)
River Twice Capital owns (GS)
River Twice Capital owns (MSFT)
River Twice Capital is short (SPY)

STEPHEN WEISS
Weiss has no disclosures in Gold

MATT HOUGAN
Hougan has no disclosures on GLD, IAU

BORIS SCHLOSSBERG
Sclossberg has no disclosures

BRIAN STUTLAND
Stutland Equities is a market maker holding hedged positions in VIX, SPX, and SPY options
Stutland Equities is a market maker holding positions in VIX futures

EMMA SUGARMAN
Emma Sugarman has no disclosures

JON NAJARIAN FAST FIRE SOT
Jon Najarian has no disclosure in (DF)

CNBC.com with wires.