Fund Performance per day (inception date : 4 Dec 06) : 0.05957%

Yesterday

JPY - (Turning Bullish) Japan's economic expansion recently has been a one-sided affair: Corporations are booming, but consumers are not benefiting. Japanese corporate earnings are expected to rise this fiscal year for the fifth consecutive time. Stock and real-estate prices are climbing -- a contrast to the declines they experienced for a decade until the early 2000s. Help-wanted signs are everywhere, and the jobless rate fell to an eight-year low of 4% in November. The economy as a whole has been expanding for nearly five years. But one key element has failed to materialize: Growth in workers' wages. Even as many Japanese companies report record earnings, they aren't sharing the fruits with employees.

USD - (Neutral) Policymakers and bond market investors alike appear more confident about the resilience of the broad US economy in 2007, with its still-thriving service sector, strong jobs market and improving exports. The data is giving mixed signals, with some measures suggesting that the housing market is bottoming out, while others point to further weakness to come. Even if demand for houses does remain stable at current levels, both construction and house prices could face continued weakness because of the large overhang of unsold homes - 6.3 months of sales for new homes in November (more if adjusted for cancellations).

Oil (Range Bound) - The Organisation of the Petroleum Exporting Countries, the oil cartel, is becoming increasingly concerned but also hamstrung about what to do about the recent 15 per cent drop in oil prices. Members such as Saudi Arabia, the group's biggest and most powerful exporter, fret that another move to cut output could damp prices even more if members do not stick to last year's agreement to cut production. One of the problems for Opec is that nobody seems sure why oil prices have fallen so dramatically. Fundamental supply and demand conditions seem to contradict it - making the challenge faced by the 11 members, who deal in real barrels rather than futures contracts, even greater.

EUR (Bullish) - German labor unions accepted meager pay raises for several years in the face of slow economic growth, high unemployment and the threat of companies shifting jobs to cheaper locations. This year, many union leaders have decided it is payback time. In the wake of healthy economic growth and fat corporate profits last year, key unions are making a push for wage increases of roughly triple the inflation rate. Such raises could boost consumer spending in Europe's largest economy, but employers worry it would erode gains in cost competitiveness that have helped Germany lead Europe's economic recovery as it became the world's largest exporter in terms of value. If German pay increases outstrip productivity gains, they could force the European Central Bank to raise interest rates aggressively, crimping growth in the 13-nation euro zone, economists say. After adjustment for inflation, wages went flat in 2002 and have declined the past couple years.

Later

1300h - JPY : Consumer Confidence

1500h - EUR : German CPI

1800h - EUR : Euro zone CPI

2130h - USD : USD PPI

Technicals

Trade strategy : Buy EUR.JPY at 15525-15555 , stop below 15420, Target: 15720, 15780, 15805.If the EUR.JPY trades lower than 15420, then should sell EUR.JPY, stop above 15530.