Portfolio Performance : + 7.95%

Actions : Did some intra-day trading on the EUR/USD

Headline News

1. MISHKIN says FOMC should extend economic projections to five years
2. Fed Mishkin says FOMC should only change inflation consensus only when economy changes
3. Miskin says that an announced inflation goal would help foreign investors
4. The Bush Adminstration on Monday cut its budget deficit forecast for the current year but expanded it to a record $482 billion for 2009 as the weakening US economy slows revenues and spending remains high
5. The US Treasury Department announced today that it expects to borrow billions of dollars more in marketable debt this quarter than originally forecasted, in part due to increased outlays like the $150 billion fiscal stimulus program
6. Japan's June unemployment rate 4.1%, higher from May by 0.4%
7. Japan's June household spending lower by 1.8% year on year
8. Singapore State investor Temasek Holdings said on Tuesday it had increased its investments in Merrill Lynch as part of the US broker's latest fund-raising effort
9. Australia's quarterly survey measure of overall business conditions fell 7 points in the second quarter to 6 points, the lowest reading since 2001
10. Taiwan index of leading indicator was unchanged in June vs May
11. The Philippine central bank said on Tuesday it expected annual inflation to come in a range of 11.2-12%
12. German wages among employees and workers have increased an average of 3.5% in April compared with the same month last year
13. Dutch July Consumer Confidence falls to plus 2.4 from plus 5.3 in June
14. The Russian Central Bank injected 192.2 billion roubles of one-day funds into the banking system at a rate of 7.02% in its first auction of the day today
15. UK Mortgage approvals slump to 36,000, the lowest since the series began in 1993
16. The National Development and Reform Commission, China's top planning agency has published broad guidelines for economic reform - the government will study and speed up reforms to property tax and study and begin to levy an environmental preservation tax, speed up restructuring of the Agricultural Bank of China and China Development Bank, push for the establishment of a growth enterprise market where smaller companies can list and expand the issuance of corporate bonds and more
16. Bank of China said that its British subsidiary had bought 30% stake in Switzerland's Heritage Fund Management for 9 million Swiss Francs
17. German july preliminary CPI higher by 0.6% from June
18. US May S&P/Case Shiller Home Price index down 16.9% year on year
19. US July consumer confidence rises to 51.9 vs 50 expected

My expectation for the USD crosses

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

Bottomline : I expect a very strong rebound in the US dollar, the equity market is expected to head higher.