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