Monday, November 06, 2006

Fund Performance per day ( inception date, 20 Oct 06) : -4.2048

Today

EUR - (From AFX) The euro dipped against the dollar after a key survey of euro zone services sector activity came in below expectations, while weak data on UK industrial and manufacturing output weighed on the pound. Nevertheless, the headline index remains well above the 50 level which indicates expansion in the sector and continues to point to robust economic growth. It will do nothing to alter market expectations that the European Central Bank will raise interest rates again next month, analysts said. Though the weaker UK data will do nothing to prevent the Bank of England from raising interest rates by a quarter point to 5.00 pct on Thursday, it will raise speculation that rates may not rise any further in 2007.

USD - Elsewhere, the dollar remained well supported after Friday's strong US employment data. Though there is little in the way of US economic data this week, market players will be watching speeches later today by Chicago Federal Reserve president Michael Moskow and Cleveland Federal Reserve president Sandra Pianalto. A victory by the Democrats in the U.S. midterm elections Tuesday would help to shrink the U.S. budget deficit, which ballooned to a record during George W. Bush's presidency, according to analysts. Polls and pundits suggest that the Democrats might pick up the 15 additional seats that they need to take control of the House of Representatives, and they are within striking distance of the six seats that they need for a Senate majority. When the Democrats lost the House in 1994, the budget went from a deficit of $164 billion in 1995 to a surplus of $236 billion in 2000. Under Bush, the surplus became a $413 billion deficit at its peak in 2004.

Later

2200h - CAD : Ivey Purchasing Managers Index

0710h - USD : Fed'e Yellen speaks on Economics

0930h - JPY : Governor Fuki speaks at conference

1345h - CHF : Unemployment Rate

1600h - EUR : Bloomberg Eurozone Retail Sales

1700h - EUR : Eurozone Retail Sales

1800h - EUR : German Industrial Productions

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