Fund Performance per day (inception date, 20 Oct 06) : -2.399%

Yesterday

USD - FOMC's minutes did not show any surprises. The Fed's main concern is to keep inflation at bay. According to the minutes, 'All members agreed that the risks to achieving the anticipated reduction in inflation remained of greatest concern.' The Fed felt that a slowing economic growth and less bullish commodity prices will eventually lessen inflation pressures. Some recent inflation barometers released since the Fed's October meeting have suggested that inflation is settling down. Fed policymakers said the housing slump was likely to remain a 'substantial drag on economic growth over the next few quarters.' However, most believed that the housing cooldown was 'likely to be no more severe than they had previously expected and that the risk of an even larger contraction in this sector had ebbed.'

GBP - Slight Hawkish stance from the Inflation report released yesterday from the BoE. In all, the Bank of England (BoE) is now forecasting a faster return in inflation back to the 2%pa target. This means that the BoE is done with rate hikes, but further rate hike in February next year would not be surprising.

EUR - Eurozone growth is starting to slow but remains robust and just outpaced the US again, according to official figures. Gross domestic product in the 12-country region rose by 0.5 per cent in the three months to September, after a 0.9 per cent rise in the previous quarter. That suggested that the best of the eurozone's recent economic recovery might have passed, but without any dramatic slowdown having yet taken place. The strength of eurozone growth, and the extent to which investment has replaced exports as the motor of growth, suggests that the impact of a US slowdown may be modest.

JPY - (From AFX) The Japanese economy grew twice as fast as expected in the second quarter, the government reported Tuesday, raising expectations that the Bank of Japan would raise interest rates by early next year. Corporate investment in factories and equipment surged, helping gross domestic product to rise for the seventh straight quarter. The economy expanded at an annualized rate of 2 percent, the Cabinet Office said in Tokyo, while second-quarter growth in Japan was revised to 1.5 percent from 1 percent. Traders will focus on the BoJ's meeting later at 1130h, and most exepct Fuki's stance to be hawkish.

Later

1130h - JPY : BoJ speaks at conference.

1600h - EUR : Italian Trade Balance

1630h - GBP : Retail Sales

1700h - EUR : Eurozone CPI

2030h - USD : CPI