Fund Performance per day (inception date, 20 Oct 06) : -2.2813%

Yesterday

USD - The dollar rose slightly aginst most major currencies. The Fed remains focused on inflation, the minutes of their last meeting suggested that a near-term cut in interest rates remains unlikely. FX markets have begun to see a greater probability of a rate cut by May, in part because of softer-than-expected data on wholesale prices, manufacturing activity and retail sales...Thus, the Fed could stay on hold for some months to come. Although monthly core inflation rates, which exclude food and energy, have moderated from earlier this year, inflation is still higher than what most Fed officials would define as "price stability."

OIL - (From AFX) The global trend toward rising inflation and soaring energy prices will lead the agenda of a meeting of finance ministers and central bank governors in Australia this weekend. Australia is set to be the host of the two-day meeting of the Group of 20 nations, or G-20, in Melbourne starting Saturday. One of the agendas is to press the world's largest economies to make global oil markets more transparent and to shun a new trend of nationalism concerning resources. According to Costello, the Australian Treasurer, "We will try and get some common ground on the best way for big importers to get resource security at fair prices and the best way to ensure markets are open and functioning as a way of protecting against jockeying for resources between countries".

JPY - Fukui says that when it comes to the timing of any increase in interest rates, nothing is being ruled out, and that the economy is expected to continue to recover, led by solid domestic demand and brisk exports.

GBP - UK retail sales volumes shot up by 0.9% in October, resulting in an increase in annual growth from 3.0% to 3.9%. Expectations had centred on +0.3%mom and +3.2%yoy. There was broad based strength, with food the only component to record falls, down 0.2%. The data certainly added weight to the argument that the Bank of England may need to tightening policy further.

TODAY

USD - Inflation slowed sharply in the US last month, new figures showed yesterday, easing the pressure on the Federal Reserve and raising expectations of an interest rate cut next year. The core consumer price index rose 0.1 per cent in October, its lowest monthly increase since the spring.

JPY - Bank of Japan kept interest rates at0.25 per cent, after a low headline inflation rate of 0.2 per cent in September. But the central bank has made it clear that it is prepared to move pre-emptively against inflation.

EUR - French President said that he shares the sentiment together with the other euro-zone countries about the strength of the euro. His comments came soon after French Prime Minister Dominique de Villepin said this week that the ECB shouldn't be left to act alone on the exchange rate and that the strong euro was hurting exporters.

CNY - Mr. Bush is scheduled to sit down with a number of regional leaders, including Chinese President Hu Jintao on Sunday, to talk about trade, regional security and issues such as North Korea's nuclear program. His is on a weeklong visit to the Asian region.

Later

2030h - USD : Building Permits / Housing starts

G20 Meeting - Fuki is expected to touch on a weak JPY and there might be pressure on Asian Finance Ministers to have more Flexible Asian Currency in view of the rising Asian economies.