Fund Performance per day (inception date: 4 Dec 06) : 1.09553%

Today

EUR - (Bullish) There has been an explosion of construction activity." The industry's emergence from a decade-long recession propelled Europe's largest economy to its fastest expansion in five years in the second quarter. Even as property booms are at or near their end in the United States and Britain, Germany is gaining momentum, promising a spur to growth for the foreseeable future. The economy's 0.9 percent second- quarter growth was driven by a 4.6 percent jump in construction activity, the biggest increase in a decade, the Federal Statistics Office said last week. Despite the gains, builders are warning against any hype. "I wouldn't talk about a construction boom yet," said Peter Keitel, chief executive of Hochtief, which is based in Essen and is the largest German builder. "But after 10 years of decline, the market is improving. If this continues, construction can reclaim its traditional role as the motor of the German economy." Hochtief is a commercial lead manager on the Frankfurt 'Hochvier' project, which will cost $1 billion. In further good news for the industry, economic growth is forecast to exceed 2 percent this year, the most since 2000 and up from 1 percent in 2005, Axel Weber, the Bundesbank president, said in a newspaper interview published last week

USD - (Neutral) Improvement in consumer sentiment, signs that manufacturing activity is picking up and more evidence that a slowdown in the housing sector is coming to an end, is providing support for the dollar as traders bet that the Federal Reserve Board will not be in a hurry to cut US interest rates next year.

AUD / NZD (Bullish) - The outlook for the Australian dollar into 2007 looks solid as global economic growth is likely to remain above historical levels which will benefit heavily commodity weighted economies such as Australia due to continued high levels of demand for raw materials.
NZD is garnering support from expectations of a further rate hike next month to rein in household expenditure even though the central bank's official cash rate at 7.25 pct is the highest in the industrialized world.

Later

2300h : USD : Help wanted index

Fund Performance per day (inception date : 4 Dec 06) : 1.38321%

Friday (22 Dec 06)

USD (Neutral) The economy continued to lose momentum in the third quarter, expanding at a weaker-than-expected 2% inflation-adjusted annual rate, and many signs suggest it will stay in a lukewarm zone in the months ahead. Economists expect decent gains in consumer spending to offset further weakness in the housing and vehicle sectors. Slow economic growth is likely to continue in the near term.

Today

JPY (Neutral) - Lower unemployment last month, only a small drop in household spending and inflation in line with expectations mean that the Bank of Japan could still raise interest rates next month, said Norio Miyagawa, an economist at Shinko Research Institute.

Later

AUS, NZ, Europe Markets are closed today

27 Dec 06, 1300h - JPY : Housing Starts

Technicals

Target USD/JPY 119.80, downside risk at 117.50

Fund Performance per day (inception date: 4 Dec 06) : 1.3518%

Yesterday

Market sees EUR/JPY and USD/JPY as overvalued.

JPY - (Neutral) The unexpectedly large increase in Japan's trade surplus last month confirmed that exports remain strong, showing US consumer spending is still resilient despite the weakness in the housing market there, NLI Research Institute senior economist Taro Saito said. 'We had earlier thought that exports would start slowing down, but despite the collapse of the
housing market, US consumer spending has been relatively solid, thereby supporting exports from Japan, automobiles in particular,' Saito said. 'Having said so, exports, by volume, are destined to slow down in line with the slowdown of the US economy,' he added.

EUR (Bullish) - Jean-Claude Trichet, said that the economy of the 12-country euro zone remained at risk of accelerating inflation, signaling that he will probably endorse interest rate increases next year. "Inflation rates are likely to increase again in early 2007," Trichet told the European Parliament's economic committee in Brussels. In his review of the economy, Trichet said that recent data confirmed the ECB's view that the economic expansion was broadening. Liquidity is "ample," consumer spending should strengthen and money supply growth is accelerating, he said. "The conditions remain in place for the euro-area economy to grow solidly," Trichet said.

NZD (Slight Bullish) - New Zealand’s economy expanded in the third quarter, with GDP up 0.3% on Q2 2006. Inflation Risks remains an objective and RBNZ is expected to keep rates on hold.

Later

1300h - JPY : Minutes of Nov 15 Meeting / Supermarket Sales

1500h to 1600h - EUR : German Import Prices / French Business Confidence Indicator / French GDP / French Consumer Spending

1700h - EUR : EuroZone Current Account

1730h - GBP : Index of Services

1800h - EUR : Industrial New Orders

2130h - USD : Personal Income / PCE / Durable Goods

Technicals

Target EUR/JPY to reach 156.90.

Target USD/JPY to reach 119.80. Risk to the upside is 117.50

Fund Performance per day (inception date: 4 Dec 06) : 1.27542%

Yesterday

USD (Neutral) - Mortgage applications came in lower last night but the market is looking for more USD data to factor in the possibility of a rate cut early next quarter. Overall last night, the dollar rose against other major currencies after the government reported that November wholesale inflation increased more than expected and ahead of two key economic reports on Thursday. Last week's jobless claims data showed a surprisingly sharp drop in filed claims following an even larger decline the previous week. The declines supported the view that employers are anticipating an economic rebound next year despite the slowdown this year.
The Federal Reserve has kept rates unchanged at 5.25 percent since August, following a more than two-year string of hikes.

Later

2130h - CAD : GDP / Retail Sales / Retail Sales less Autos

2130h - USD : Initial Jobless Claims / annualised GDP / Leading Indicators

0100h - USD : Philadelphia Fed Survey

Fund Performance per day (inception date : 4 Dec 06) : 1.48817%

Yesterday

OIL (Bullish) - Crude is finding support at the 60 USD/barrel level and there is limited downside. Middle Eastern countries are confident that the oil price surge will continue and they will continue to spend, investing in oil-consuming countries, offseting global trade imbalances.

USD (Neutral) - The broadest measure of the nation's trade deficit increased in third quarter, with the lack in payments on foreign debt and investments increasing to a potentially worrisome high. The U.S., for the fourth consecutive quarter, also paid out more to foreign creditors and investors than it received from its own investments abroad. The investment deficit rose to a record $3.78 billion in the third quarter, up $1.63 billion from the second quarter, the Commerce Department said.

NOK (Bullish) - Statoil will buy the oil and natural gas operations of Norsk Hydro in an estimated $28 billion deal that creates the largest offshore operator in the world and a new national energy champion for Norway. The country now holds about half of Europe's remaining oil and natural gas reserves. It is the world's third-largest oil exporter after Saudi Arabia and Russia. The expanded Statoil's estimated 6.3 billion barrels in oil and natural gas reserves would be just a small fraction of Saudi Arabia's national oil company, Saudi Aramco, or Russia's gas company, Gazprom, but the company's exports are strategically important to Western Europe.

Today

USD (slight Bearish) - The dollar fell against other major currencies Tuesday, driven by technical rather than fundamental factors in a day of thinner trading before the holidays. Despite a stronger than expected PPI data, the greeback lost against the majors.
The Labor Department reported Tuesday that its Producer Price Index, a measure of wholesale inflation, jumped 2 percent in November, the biggest advance since a similar increase in November 1974. The gain was four times larger than the 0.5 percent increase economists had forecast.

EUR (Bullish) - The closely watched Ifo index of business confidence in Germany showed an unexpected improvement for December, underlining the strength of the upturn in Europe's biggest economy.

Later

1615h - CHF : Producer and Import Prices

1730h - GBP : BoE Minutes / Business Investment / M4 Money Supply / Banks Lending

2000h - USD : Mortgage Applications

2130h - CAD : Wholesale Sales

Fund Performance per day (inception date : 4 Dec 06) : 1.37987%

Friday

OIL - (Bullish) The Organisation of the Petroleum Exporting Countries cut productions early next year despite a tightening world crude market. Opec ministers met in Abuja and agreed to cut output by 500,000 barrels a day from February 1. Analysts saw the move as highlighting Saudi Arabia's increasing assertiveness within the cartel, which comes as Riyadh is also stepping up its political activity in the Middle East, even at the risk of angering the US, its major western ally.

EUR - (Bullish) More than half a million people found jobs in the euro zone in the third quarter, and annual wage growth slowed to 2.2%, according to the European Union's statistics office Eurostat. The European Central Bank will closely monitor wage growth as higher consumer purchasing power can trigger inflation, which the bank wants to keep just below 2% annually. The ECB has said a risk to its inflation outlook, which predicts price growth slowing to 2% next year from 2.1% this year, was that wages could grow more than expected because of rising employment and fast economic growth.

Yesterday

USD - (Bulls losing strength) America's deficit in the broadest measure of trade shot up to an all-time high in the summer, reflecting the huge jump in the country's foreign oil bill.
The Commerce Department reported Monday that the current account trade deficit increased 3.9 percent to a record $225.6 billion in the July-September quarter. That represented 6.8 percent of the country's total economy, up from 6.6 percent of the gross domestic product in the spring quarter. The current account is the broadest measure of U.S. trade because it tracks not only the flow of goods and services across borders but also investment flows. The figure is closely watched by economists because it represents the amount of money the country must borrow from foreigners to make up the difference between what America imports and what it sells overseas. Economists expect that figure to climb even higher in coming years representing the growing size of U.S. assets now in the hands of foreigners, reflecting all of the trade deficits run up over the past three decades.

Later

1400h - JPY : BoJ announces rate decision. (Market expects rates to hold, Nikei index might see more strength)

1430h - JPY : BoJ speaks at conference

1500h - EUR : German Producer Prices

1700h - EUR : German IFO

2000h - CAD : CPI

Technicals

Long EUR/USD at 1.3240, Support might be seen at 1.3035

Fund Performance per day (inception date: 4 Dec 06) : 1.89576%

Yesterday

SEK - (Bullish) Sweden's Annual pace of decline in unemployment rate is slower than in October, but at 0.7% on the year, the pace of decline in unemployment is still robust.
A rate hike tomorrow and the promise of future rate increases in the Riksbank's inflation report is still very much on the cards.

CHF - (Neutral) The SNB has raised the range for 3-month libor by 25bp to 1.50%-2.50%, moving the target to 2.00% from 1.75% - as expected. According to the SNB, the reasons for the big downward revision of Swiss inflation are 1) lower oil prices, 2) the opening of the labour market, and 3)the SNB's proactive monetary policy. As consequence the SNB sees limited inflationary pressure untile the Q3 2009 end of the forecast horizon.

OIL - (Turning Bullish) A sliding Greenback would pressure OPES to push oil prices up. which is why several Opec members, including Saudi Arabia, have talked up the chances of another cut. But Saudi's contribution may be as much for internal consumption as anything else. Yesterday, the International Energy Agency said Opec had only cut 610,000 b/d since October. Small cuts by Venezuela and Iran were largely down to maintenance. Saudi, tired of shouldering the lion's share of real cuts, may press others to take action. A further cut would be both unnecessary and difficult to enforce. A $60 floor has already been established, which should be a signal for more, rather than less, output. Oil inventories have already dropped. If winter intensifies, the market could be left short in the first quarter of 2007 and oil might spike back over $70, hurting overall demand. The problem is, despite some softer words from Saudi yesterday, Opec's rhetoric has stoked expectations of another cut, so the oil price could well fall, even if one does not come.

USD - (Turning Bullish) The sinking U.S. real estate market, whose meteoric rise in the last five years allowed consumers to draw on their housing equity to spend freely, has become the wild card in the outlook for 2007. To be sure, only a minority of economists now believe that the housing bust will spill over into the rest of the U.S. economy and trigger a full- blown recession. The U.S. Federal Reserve left its interest rates untouched Tuesday for the fourth straight time, holding firmly to its position that a slowing economy will subdue inflation in the months ahead.

EUR - (Neutral) ECB has signaled it is likely to raise interest rates further, arguing that inflation pressures persist in the 12 countries using the euro. A euro-zone inflation rate of 1.9%, while still within the preferred range, could herald higher 2007 inflation than euro-zone central bankers currently forecast.

Today

JPY - (Neutral) (From AFX) The Tankan survey of business sentiment for large manufacturers confirmed a continued recovery in the industrial sector but it may not be a strong incentive for the Bank of Japan to raise interest rates this year, said Norio Miyagawa, an economist at the Shinko Research Institute. The Bank of Japan said the headline diffusion index for large manufacturers jumped to 25 in the December survey from 24 in September, marking the third straight quarter of improvement and matching market expectations.

Later

1700h - EUR : Italian Trade Balance

1800h - EUR : Eurozone CPI

2130h - USD : CPI / Empire Manufacturing

2200h - USD : TIC Data

2215h - USD : Industrial Production

Technicals

Fund Performance per day (inception date : 4 Dec 06) : 1.8544%

Yesterday

USD - (Neutral) The Trade deficit narrowed 8.4 percent from September’s figure to $58.9 billion. Fed's Policy Board decided to keep Federal Funds rate, as expected. Even the brief statement that followed the decision could not rally momentum behind the dollar either way. Market Sentiment is that the US economy is slowing down and I feel that we need more hawkish figures to confirm more USD strength.

Today

USD - (Neutral) The Federal Reserve signaled that while the economy looks a bit weaker than a month ago, its forecast and concerns about inflation are unchanged, and thus interest rates are still more likely to rise than fall. The Fed yesterday left its short-term interest rate at 5.25%, where it has stood since late June. In the statement accompanying its decisions, the Fed downgraded its assessment of the housing market and acknowledged "mixed" signals on growth. But its forecast of moderate growth is unchanged. Inflation remains its principal focus, and it still says its choice is whether to raise rates -- not to lower them. Bernanke was again dovish and still sees slowing growth as the factors ultimately bringing down inflation. A lot of talk in the market about the Fed easing next year: –An end-of-May rate cut now a 67 percent probability event as indicated by futures.

Later

1800h - GBP : ILO Unemployment Rate / Jobless Claims Change / Average Income Bonus

2130h - USD : Advance Retail Sales / Retail Sales less Autos


Technicals

Long EUR/USD at 1.3290

Long GBP/USD at 1.9740

Fund Performance per day (inception date: 4 Dec 06) : 1.97762%

Friday

EUR - Traders focused on US non farm payroll after the ECB rate hike and comments from Trichet. Trichet was generally upbeat about European growth, which was also reflected during the ECB December staff projection meetings. However despite a string of hawkish economic data during the European hours, traders looked to the non farm payroll to decide their net positions on the dollar cross.

Today

JPY (Neutral) - (From Saxobank) A story in the Japanese Jiji News stated that the BoJ would keep rates unchanged. This resulted in yet another round of JPY selling across the board, supported by a streak of weak Japanese macro economic data recently. Both CPI figures, GDP figures and other, monthly releases are still painting a picture of an economy struggling to overcome the deflation and stagnation since 1990. The hope (for Carry Traders, at least) seems to be that JPY will forever stay a weak and struggling funding currency vs. the high yielders.

USD (Gaining strength) - US Treasurer, Paulson, was out in China on Friday, calling for more "foreign exchange rate flexibility", which theoretically equals a lower USD/CNY exchange rate. The market reacted by sending the USD higher, not lower. This tells us that there was a critical mass looking for a trigger to buy USD. In other words, EURUSD is no longer a one-way street as it was after the break of 1.2980.

OIL (Turning Bearish) - Two years ago Saudi Arabia, the world's biggest oil exporter, opened its spigots and let supply out-pace demand. The result was a gradual build up inoil inventories in the US, Europe and several Asian oil-consuming countries. This month Ali Naimi, the country's influential oil minister, appeared abruptly to reverse that accommodating policy. At a meeting in Cairo he told reporters that the market was "significantly" oversupplied. "Inventories in the US are high, not low . . . That's why the market is out of balance," the minister said, adding that 100m barrels of oil should be cut to rebalance it. Inventories have indeed swelled in recent years. By the end of September, stockpiles in the world's 30 biggest oil-consuming countries were at eight-year highs, holding enough oil to last 55 days of consumption. This worries Mr Naimi because, as the spare-oil cushion in consuming countries has grown, some of the power to influence world oil prices has shifted from the Organisation of the Petroleum Exporting Countries to its customers. Saudi Arabia has already begun to regain its clout and rebuild its own cushion of spare supply, which dwindled as the kingdom tapped into it over the past years to quench a growing thirst in the US and China. Saudi Aramco, Saudi Arabia's national oil company, is on schedule to boost its production capacity from 10.5m to 12.5m barrels a day by 2009, while the energy ministry is keeping tight control of exactly how much of this it chooses to pump each day. The rest remains underground, for use in the event of a sudden supply interruption elsewhere in the world. In fact, signs of a shift in Riyadh's policy began to emerge in October. It was Saudi Arabia's idea that Opec agree to reduce its production by 1.2m b/d at the cartel's October meeting in Doha. On Thursday the 11-member group is scheduled to meet again, this time in Abuja, the Nigerian capital. Mr Naimi's utterance and the immediate echo of agreement from other ministers in Cairo is the best indication yet that the kingdom and Opec are seriously considering another cut to further trim the inventories outside their control.

Later

1730h - GBP : CPI

1800h - EUR : German ZEW Survey

2130h - USD : Trade Balance

0315h - USD : FOMC Rate Decision

Technicals

Look for a retracement towards the 1.3030-area for the EUR/USD

Fund Performance per day (inception date : 4 Dec 06) : 1.27479%

Yesterday

EUR - European Central Bank president Jean-Claude Trichet said markets should not interpret his comments at today's ECB news conference as pointing to an interest rate hike in February.
Trichet told the news conference that the ECB needs to act 'in a firm and timely manner' to control inflation. 'Looking ahead, acting in a firm and timely manner to ensure price stability in the medium term is warranted,' he said. But Trichet dropped his previous reference to the need 'to further withdraw monetary accommodation' if the economic recovery continues in line with ECB expectations. The ECB has hiked rates once every two months in the second half of this year, culminating in a further hike in the central bank's main rate to 3.50 pct today.
Maintaining this pace of monetary tightening would point to a further rate hike in February.

GBP - BoE kept rates unchanged yesterday. This could be a signal of less than bullish data ahead.

NZD - The Kiwi found renewed strength on the back of RBNZ rate decision which meant leaving the cash rate at 7.25%. the accompanying statement saw hawkish comments by RBNZ's Bollard that said "Further tightening cannot be ruled out, and any policy easing still considerable way away." So for now the kiwi carry trades lives on, but it should only be considered more attractive levels to short NZD against pretty much everything as we believe that 2007 will be the year that the NZD finally sees some significant downside correction.

JPY - Downward revisions in third quarter GDP is not likely to sway the Bank of Japan from deciding on an early rate hike either this month or in the first quarter of next year, but its policy stance could change, depending on the outcome of next week's Tankan survey, economists said.
They said it is also far from clear whether the central bank can continue its rate adjustments at a measured pace -- or even when it can make a third rate increase after the next one -- given that US economy is slowing and is taking the Japanese economy along with it.

Later

USD (Neutral) - Traders eagerly anticipating the jobs data later. A dovish report could trigger much EUR buying.

EUR (Bullish)

JPY ( Neutral)

NZD (Bullish)

1900h - EUR : German Industrial Production

1900h - EUR : Euro Zone OECD Economic Leading Indicators

2130h - USD : Change in Non Farm Payrolls / Unemployment Rate


Technicals

Long GBP/USD at 1.9740

Long EUR/USD at 1.3415

Fund Performance per day (inception date : 4 Dec 06) : 1.73497%

Yesterday

EUR - (Bullish) Germany's inflation rate will be set sharply higher by a three percentage point rise in VAT next January, but Europe's biggest economy will avoid a collapse in consumer spending, according to a survey on Tuesday. Retailers and service providers appear confident that Germany will escape "a protracted negative impact" resulting from the tax hike. However, private consumption growth could fall by about a percentage point after the increase takes effect on January 1, and inflation will rise by 1.2 percentage points as a result - higher than previously estimated.

USD - (Gaining strength) Bernanke's Hawkish comments last week start to makes sense. Property market activity has taken a big hit, with housebuilders bearing the brunt. They are discounting heavily in an effort to shift the glut of unsold homes. In an attempt to bring supply and demand back into balance, they are also building fewer homes. The economic slump is crimping economic growth and pushing up delinquencies among riskier US mortgages - as HSBC noted yesterday. But the housing downturn looks to be decelerating and a number of leading indicators are showing signs of perking up. Mortgage rates are lower and income growth has been outpacing house price inflation, making housing more affordable. The S&P 500 Homebuilders Index is up about one third, although it remains 30 per cent shy of last year's July peak. Traders will be focusing on the crucial non-farm payroll numbers on friday to decide if the appreciation of the EUR should continue.

JPY - (Turning Bullish) (From UBS) The carry trade environment remains fragile with the market yesterday reacting to comments by BOJ board member Nishimura that the central bank can act even if the market does not match the BOJ's view of the economy. This follows on from fellow board member Mizuno's comments earlier this week arguing that interest rates could be raised even if Japan's economic indicators were not all strong. GDP revisions and machinery orders on Friday and the Tankan next week are key releases now to watch.

Later

1445h - CHF : Unemployment Rate

1500h - EUR : German Wholesale Price Index

2000h - GBP : BoE Rate Decision

2045h - EUR : ECB Rate Decision

Technicals

Go Long on EUR/USD at 1.3595

Fund Performance per day (inception date: 04 Dec 06) : 2.59935%

Today

Market Bias - USD viewed as undervalued by FX Markets

AUD (Forecast is neutral) - The current account deficit narrowed by less than expected in the September quarter 2006 to $12.1 billion (market median: $11.0 billion). The narrowing of the current account was due to the decrease in the trade deficit, which was due to stronger imports. However, exports is expected to pick up after the drought has lifted in mid 2007. The drought toegther with high fuel prices also sent the services sector index down.

USD - (Neutral ahead of ISM data) Traders will be focusing on the ISM Non Manufacturing Data before going long on the GBP and EUR.

JPY - (Bullish) The yen is at its four month highs against the dollar and recouping much of its recent losses against the euro, on speculation that the Japanese central bank could raise interest rates again soon. The currency's gains came after Bank of Japan board member Atsushi Mizuno was cited by Reuters as saying that there is no need to wait until all economic indicators are strong before raising interest rates again.

EUR - Cable and the euro were unable to benefit from news of stronger-than-expected services sector PMI surveys out of the UK and the euro zone. The news was offset, however, by a very disappointing retail sales survey from the British Retail Consortium released overnight. ECB is scheduled to announce its latest interest rate decision on Thursday, with a quarter point rise in its key rate to 3.50 pct fully expected. Market players will therefore be looking to the accompanying press conference for any indications on the interest rate outlook going into next year.

Later

2100h - CAD : BoC Rate Decision

2200h - USD : ISM Non Manufacturing

0700h - GBP : Nationwide consumer confidence

0730h - AUD : GBP YoY and MoM

Technicals

USD/JPY - Short at 114.20

Fund Performance per day (inception date : 04 Dec 06) : 0%

Today

AUD - (neutral) : AUD Q3 Company Gross Profits were Up 0.6%, Building Approvals were down 7.4% from September. Looks like the RBA will be keeping rates.

JPY - (neutral) : The latest quarterly government survey showed that spending on building factories and upgrading production facilities continued to grow in the past quarter but at a slower rate than the record-breaking pace of the previous three months, which could prompt the government to downgrade GDP data for the period, analysts said. But they also stressed that despite moderation in the growth pace of corporate capital spending, the quarterly survey underscored the solidness of the corporate sector, which had underpinned the Japanese economy over the past few years.

EUR - (Correction expected but Still Bullish overall) : Spain's jobless data were up 1.5% MoM but 3.4% down YoY. UK's Construction PMI is 54.8 down from the 2.5 year high of 58.1 in Oct. Traders still feel the figures are not sufficient enough to push to GBP/EUR to the last support level.

EUR - ECB is not sure whether to rise rates or keep them as they are. Eurozone borrowing costs are almost certain to rise by another quarter-point this week, but the European Central Bank faces a more difficult job: deciding whether or how it might signal a slowdown or pause in further interest rate rises in 2007. Economic indicators have surprised on the upside; the ECB frets in particular about fast-growing credit and money supply data. Forecasts for next year might have shown inflation with that range too, if it were not for a three-point rise in German value added tax next month. Meanwhile, the euro's rise could have a braking effect on the economy similar to that of higher borrowing costs. Other factors include the risk of a US slowdown having knock-on effects on the eurozone, and the complications created by Germany's VAT increase.

USD - Traders will looking to new economic data and the tone from the European Central Bank for fresh reasons to trade on the dollar. The ECB will this week be watched closely for clues about future eurozone interest rates. Financial markets will scrutinise carefully the words of Jean-Claude Trichet, ECB president, for signals on the pace of increases in 2007 and any signs of concern on the currency. Some analysts think Mr Trichet may seek to create more room for manoeuvre on the timing of future moves, increasing the risks for traders purchasing euros. The most important release of economic data will be the US employment report on Friday.

OIL - Inventories of crude oil are too high, indicating that OPEC, which supplies two out of every five barrels, should cut output. Ministers of the Organization of Petroleum Exporting Countries will next meet in Nigeria on Dec. 14 to decide whether to cut production for a second time in two months. But among the world's biggest consumers of oil there is unease at the prospect of production cuts from the cartel. The U.S. energy secretary, Samuel Bodman, said last week that OPEC should refrain from another cut, because a colder-than-average winter in the United States may increase demand.

Later

1900h - NZD : ANZ Commodity Prices

Fund Performance per day (inception date: 20 Oct 06) : -0.064217%

Friday

JPY - (Neutral, looking ahead) Lower than expected CPI for November were released on friday, which makes the market uncertain as to when BOJ will decide to increase rates.

GBP - (Short Term Correction expected, looking ahead) Cable gained on weaker than expected ISM figures, traders were very bullish on the Pound and sent the GBP/USD cross to all time highs once again.

USD - (Short term rebound, looking ahead) (From dailyFX) The national ISM survey of manufacturing conditions fell below the 50 mark, indicating that activity contracted rather than expanded in the month of November. With five out of the ten underlying components including employment, new orders and production contracting, the possibility of a recession in the US economy is growing. The weakness of the housing market is finally spreading to the rest of the economy and both traders and economy watchers are worried. The US dollar has fallen once again while the stock market tanked on the back of the report. In addition to the ISM, construction spending also dropped by 1 percent with a comparably large downward revision to the September data. Interestingly enough though, Fed President Plosser as well as the ISM head downplayed the significance of the report. They felt that a one month contraction was too little to deem the entire sector as recessionary. In fact, we would need to 6 months of sub 50 readings to label it as such.

Later

1700h - GBP : PMI Construction Survey

1800h - EUR : Euro Zone PPI

Technicals

Sell - USD/CHF at 1.1920

Buy - EUR/USD at 1.3235