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