Daily Fundamantal Report 13.3.2009

Today, financial markets witnessed some recovery, which started since yesterday to pay the principal currencies of high-yield strongly upward as we see today and is due to the optimism that prevailed in the market since yesterday following the release of U.S. retail sales data, which showed an unexpected improvement, prompting the risk appetite of the market, but, unfortunately, often this movement will be temporary as the economic conditions at present do not encourage the continuation of this recovery.
Decreased confidence that the global economy shrank after the most major economies, and were dominated by fears of recession in depth the economic global governments are trying to find appropriate solutions futile to revitalizing the economy, which took place in the worst economic crisis since the Second World War, and economic data are still economies of the world indicate the decline in the performance of the global economy of declining levels of production and high rates of unemployment and this is a threat more than engaging in the process of economic stagnation and increases the pressure on governments to find appropriate solutions capable of addressing the economic collapsed.
With the increasing number of Americans who are dismissed from their place of work, we find that retail sales in the United States, back in February, even if less than expected decline in income as a result of the continued stagnation of individuals and lending system, which increases the concern about the deepening recession in the largest economy in the world the fact that consumption constitute two thirds of the growth
Terms of retail sales in February fell by 0.1% and the worst of the past, when sales rose in January by 1.0%, which was adjusted to 1.8%, but better than expectations, which was -0.5%, while retail sales, which exclude transportation have risen by 0.7% and the worst of the previous 0.9%, which was adjusted to 1.6%, but better than expected -0.1%.
We have the European Central Bank yesterday issued the monthly report on the European Central Bank and has come within the folds of this report data on the expectations on the European economy after the European Central Bank cut interest rates 50 basis points worth of interest up to the present 1.50%, while also reducing the interest rate on the marginal lending facility and deposit facility to 2.50% and 0.50% sequentially, and this decision is the European Central Bank has cut interest rates since last October, the value of 275 basis points
Has resulted in economic damage suffered by the global economy to the low volume of trade and economic activities between the European region and other parts of the world, and even emerging economies, which has been supporting the European exports at the beginning of the global crisis has seriously affected as a result of the deepening recession in all parts of the world, and But the crisis flared up more when accompanied by declining levels of global demand for European goods and commodities in the levels of the weakness of internal demand, as it with the high levels of unemployment and lack of consumer confidence moved strongly in the European region to refrain from spending and demand, and here the European economy fell into the trap of stagnation.
According to expectations the European Central Bank and economic data available at the present time the bank is expected to increase gross domestic product had fallen this year, more especially after the economy shrank in the fourth quarter of last year rose by 1.5%, and is expected to decline through 2009 would range between 2.2 % and 3.2%, decline by between 0.7% and the recovery rate of 0.7% over 2010.
Disclaimer: All data provided in this document are obtained from resources that we believe are reliable. And they are provided to inform traders about markets and help them make better decisions. Therefore, FXCBS Fienex Group LLC does not hold any responsibility for mistakes that could occur in these data, or any financial impact of using these data in trading.
Copyright©Fienex Group LLC2009