Daily FX
Euro Headed Towards 1.40?
Friday July 20, 4:38 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

The Euro climbed to a new record high today, putting 1.40 within arm?s reach. Like the US, there was no major economic data released, which means that the move higher was solely driven by subprime related dollar weakness. The biggest question on the minds of Euro traders is whether this will matter for the European Central Bank, who will be meeting to discuss monetary policy in 2 weeks. Judging from the recent comments made by ECB President Trichet and his peers, it will not. Earlier this week, Trichet has warned European politicians that interference into their monetary policy decisions will be a breach of the EU treaty.

He may not want to talk down the Euro anytime soon because that may be misinterpreted as giving into political pressure. Furthermore, not only has ECB Garganas indicated that further rate hikes are likely, but this morning, Constancio said that they have no target for the exchange rate. Unlike back in December 2005, Germany, the Eurozone largest member country is better equipped to handle a stronger currency. Therefore if the ECB does step in to stop the Euro?s rise, it would certainly be a blow coming from the left field. Looking ahead, the most important pieces of data on the Eurozone calendar are EZ PMI, M3 and the German IFO survey. Steady or softer figures are expected all around. Meanwhile Swiss producer prices were much softer than the market expected in June, but this has not affected the value of the Franc. Next week, we are expecting the KoF report of leading indicators.

Daily FX
Carry Trades: Is this Profit Taking or Liquidation?
Friday July 20, 4:40 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

Japanese Yen crosses or carry trades have sold off significantly today, raising the question of whether this is finally liquidation or just another bout of profit taking. The gap between Japanese and US bond yields has been narrowing with Japanese Yields holding steady and US yields selling off aggressively, which suggests that market sentiment has changed.

For USD/JPY we have seen weakness throughout the past week and further losses are of course contingent upon whether the problems in subprime become global. The degree of today?s move reminds us of the move that happened in early June which means that it could extend for a few more days next week. There is enough on the US and Japanese calendar next week to prove to us whether the markets have really turned. From Japan, we are expecting consumer prices and retail sales.

Daily FX
British Pound Hits New 26 Year High on Stronger GDP Growth and Dollar Weakness
Friday July 20, 4:42 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

The British pound surged to a fresh 26 year high on the back of overall dollar weakness and stronger second quarter GDP growth. A rise in oil extraction in the North Sea provided an unexpected surprise to GDP growth. With the market so bullish British pounds to begin with, stronger growth will only give those looking for another rate hike greater confidence.

The futures curve is still pricing in 6 percent interest rates by the end of the year, but the question is whether this will come in the third or fourth quarter. Last weeks less hawkish minutes suggests the latter and unless we get some surprising comments from BoE officials, we will not get much more clarity next week. The only pieces of data on the UK economic calendar are house price reports and CBI Industrial trends survey.

One of the most difficult aspects of getting your finances in order is finding the motivation to do so. Such a task can seem a massive endeavor to undertake. And even if you jump-start yourself into action, it can be daunting to maintain focus.

Here are some basic steps you can take to help motivate yourself to move from merely thinking about improving your finances to actually taking action to improve them.

1. Write a list. While this may seem obvious, it's often the hardest step to take. Thinking about all of the different tasks you need to do can paralyze you into doing nothing at all. If you can write down all of the things you need to do, then you have a list from which to begin tackling the tasks, and it will become easier to motivate yourself to work toward them.

2. Set financial goals. Once you have made your list of the financial tasks you need to accomplish, spend some time turning these into financial goals. One of the most important points when setting goals is to make them specific and to place a time limit on them. For example, "I want to have $25,000 in my retirement account within five years" is a much better goal than "I want to fund my retirement account." The more specific you can be with your goals, the easier it will be to

NEW YORK (AP) -- Citigroup Inc. said Friday its second-quarter profit rose 18 percent as strong overseas operations helped the biggest U.S. bank pull in record revenues.

The New York-based bank, like its competitors, has taken advantage of faster-growing markets around the world as the sluggish U.S. housing market and other factors slow domestic business.

Citigroup said net income rose to $6.23 billion, or $1.24 per share, in the April to June period, from $5.27 billion, or $1.05 a share, in the same period a year earlier.

Revenue in the quarter grew 20 percent to a record $26.63 billion from $22.18 billion a
ear earlier. International revenue soared 34 percent to $12.56 billion.

The results beat the average forecast of analysts surveyed by Thomson Financial of