fund performance todate ROI : 25.3%

Today's Events

USD : GDP was released at 2.6% , which was largely according to market expectations. This meant that Economic growth is slowing. 4 things to note. First, High energy prices continue to curb spending. Second, housing sales is something of concern to the Fed, according to US Kansas City Fed President Hoenig. Thirdly, weaker profitability and higher defaults in the banking sectors might lead to the Fed cutting interest rates in future. Lastly, the Dollar Yuan issue, which will be decided in "a day or two" in the meeting between Paulson and Schumer

JPY : The new finance minister's comments on "the yen is somewhat weak against the euro" caused the EUR/JPY to surge.

EUR : The unemployment figures today was somewhat higher than expected. The ILO reading of unemployment went to 8.2% from 7.9%, probably because of the loss of jobs after the end of the World Cup. Overall, Germany's labour market has shown much improvement but the upcoming VAT hike to 19% from 16% could have a large impact on the German economy.

Tomorrow

0730h : JPY - Japan releases a host of important figures for the month and we can expect this to have an impact on the JPY. The consensus is that both employment figures and CPI reports are anticipated to rise.

1400h : EUR - German retail figures are released. Expectation is that the MoM figures will be slightly better than August's

1630h : GBP - Consumer Credit figures might be worse than thought. Today's correction from the UK Office of National Statistics together with the BoE's dovish comments shows that the GBP is facing more of a slowdown than inflationary presuure.