Portfolio Performance : +5.6%

Actions : Fresh Short EUR/USD

Headline News

1. Swiss Authorities have received a formal request for help from the US IRS in connection with investigations into alleged tax evasion schemes at Swiss Bank UBS
2. Trichet is determined to bring inflation down to under 2%
3. Strong Selling on NZD emerges
4. Moody's downgrade Lehman Brothers to A2, outlook negative
5. NZ CPI jumps 1.6%, fastest pace since 1990
6. Malaysia's manufacturing sales in May rose 14.8% from a year earlier, on higher demand for petroleum and iron and steel products
7. Japan June Department Same Store Sales lower by 7.6% year on year
10. German June PPI higher by 0.9% from May
11. Moody's says that inflation may lead to adverse global inflation
12. Italy May industrial sales lower by 2.7% year on year
13. UK M4 Money Supply higher by 0.2% in June from May
14. Euro Zone May trade deficit 4.6 billion versus 2.5 billion surplus in April
15. India spot sugar gained on strong domestic demand

My expectations for the USD crosses

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

Bottomline : I feel that the market is getting less bearish, I expect the US dollar to slowly gain in strength.