Global Macro hedge funds have been struggling this year, however last month brought some respite from a series of tough returns, but only for a few players. Credit Suisse hedge fund index recorded a 1% increase in the global macro sub-strategy. The average return for the year has now edged up to +2.53% according to the index. October saw overall positive news from the U.S and Europe; the main surprise contribution came from the last minute budget deal that was struck up in the U.S. The Eurozone remained largely uneventful in October, however a surprise cut in November drove interest rate to nearly zero, hurting longs in the euro. Other than the extension of the debt ceiling, the nomination of Janet Yellen as President Obama’s choice for Fed chair came as major market-moving news. Given that Yellen is supportive of an easy monetary policy, it is probable that Bernanke’s philosophy will prevail and Fed will reduce its unemployment rate target to a lower figure than 6.5%.