Portfolio Performance : -1.95%

Headline News

1. Fed's Lacker sees positive growth in 08, warns of unacceptable high inflation
2. Russia threatens to react with military force against US missile shield
3. American consumer credit rise $7.78 billion, mostly the use of credit cards
4. US ABC consumer confidence -41 from -43 in the previous week
5. Japan's May core private sector machinery orders higher by 10.4% from April
6. Australia consumer confidence hits 16 year low in July
7. Malaysia says that CPI may exceed 6%
8. Iran Test fires nine missiles
9. German current account surplus 7.5 billion euros vs 15.5 billion in April
10. The European Union agreed in principle yesterday to publish weekly oil stock data, in what ministers described as an attempt to inject more transparency to a market where prices are regularly reaching new highs.
11. Trichet says that Euro zone growth moderate but ongoing
12. US crude oil stocks fell to 293.9M barrels
13. Gasoline stocks gained 0.9M to 211.8M

My expectation for the USD crosses

1. AUD : Neutral
2. GBP : Positive
3. CAD : Positive
4. JPY : Negative
5. CHF : Neutral
6. EUR : Negative

Bottomline : I am still holding on to the long GBP/USD trade. The US dollar is weakening, but I think the market is still looking for a direction