Daily Fundamental Report 9/2/2009

Decline in the dollar today, with the increasing expectations with high rates of unemployment in the month of January to reach a rate of 7.5% compared to previously at 7.2% in addition to the estimates, which revolve around work more layoffs of up to -540 A and function compared to previously when the -524 A; shows expectations the U.S. economy plunged in the process of economic stagnation

The euro rose in trading today, supported by a weak U.S. dollar, and after the European Central Bank's decision last week to keep interest rates steady at a rate of 2.00% in addition to Mr. Trichet's comments indicated that the rate of European inflation over the medium term may remain close to levels of 2.00%, and the view that European region will reap the benefits of reductions in the past months by 225 basis points over the next few months, and emphasized that inflationary pressures may be reduced within the European Union and beyond. Mr. Trichet said at the end of a press interview, he did not rule out further cuts in European interest rates in the coming months.

The pound sterling rose today is also supported by a weak U.S. dollar, and after the decision last week of the Bank of England to reduce UK interest by 50 basis points to reach the proportion of British interest at 1.00% and the lowest since 1964 and the reduction in conformity with the expectations and in order to revive the British economy in the the light of the deepest economic recession since World War II, and issued Friday by the British economy of industrial production data for the month of December where it came from reading the actual low-rate of 1.7% when compared to -2.3% previously.

Producer price index showed for the month of January a high proportion of 1.5% compared to the previous reading at the low rate of 2.0% which shows the response of the British economy of the British government's attempts to support the financial system.
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