Fund Performance per day (inception date : 4 Dec 06) : 0.99452%

Yesterday

USD (Bullish) - The Federal Reserve thinks that some inflation risks do remain. It would be a shock to investors if the next move in short-term rates turned out to be up instead of down. At the moment, investors remain focused on the risk of weakness in housing activity cutting directly into economic growth, as well as the danger it poses to consumer spending. Interest rate futures are pricing in almost two quarter-point cuts by the Fed this year. But there is a different scenario. Imagine if the housing market's dramatic slowdown were to level off, as it did in the UK, and then show signs of renewed strength. But if consumer spending in general holds up, the rest of the economy continues to chug along, and the US benefits from strong growth elsewhere in the world, things could look rosier further into the year. While the most likely direction for rates is still down, it remains possible that 2007 will not bring the looser monetary policy some investors are banking on.

EUR (Bullish) Europe's manufacturing sector steamed into 2007 with strong growth amid buoyant global demand, according to a closely watched survey of purchasing managers released Tuesday that also highlighted growing divergences between Germany and France, the two largest economies in the 13-nation euro zone. Makers of everything from trucks to machine tools to chemicals reported that activity during December kept up the strong pace that emerged around mid-2006. German manufacturers have been profiting for years now from a strong global expansion, but in recent months they have also seen the awakening of long-dormant consumers. Unemployment fell below four million, to 9.6 percent, in November, giving people more money to spend on consumer goods like cars and appliances, and is likely to sink another notch when new figures are reported on Wednesday…The euro zone is beginning the year with strength, economists believe.

Today

USD (bullish) - Federal Reserve Board Chairman Ben Bernanke and his colleagues on the Federal Open Market Committee continued to view the current rates of core inflation as 'uncomfortably high' at their meeting last month and pledged to watch incoming economic data closely before making a decision about interest rates scheduled to take place at the end of this month. 'Members agreed that the statement should continue to convey that inflation risks remained of greatest concern and that additional policy firming was possible,' the Fed said, according to the minutes of the Dec 12 meeting, released today. Nearly all FOMC members thought the slowdown in the housing market was likely to lower economic growth in the near term, though the negative effects would likely dissipate over time.

Later

1445h : CHF - CPI

1655h : EUR - German PMI

1700h : EUR - Euro-zone PMI

1730h : GBP - M4 Money Supply / PMI

1800h : EUR - CPI Estimates

1830h : GBP - Gfk Consumer Confidence