Numbers improving in the U.K.

Trade numbers came out improved in June to 4.28Billion Gbp from 4.98Billion Gbp in the prior month. This number was better then the consensus. This turn was driven by trade gains against Japan, China and the U.S. This could be a sign that the U.S. deficiet due out on Friday could be worse then expected. Overall headlines seem to be more supportive of Gbp.

Asia. With crude making new highs everyday I am do not like owning Asian currencies. This coupled with my feeling that the dollar could come under near term pressure has me long Euro/Jpy.

The Fed raised rates once again today (3.50%Fed Funds). They also signaled that the "measured pace" was still the way they would proceed.

FXTRADINGIDEAS@AOL.COM