Fundamental Outlook17/7/2009

The evident was not much change since yesterday's trading as majors remained within relatively the same levels despite the mixed data seen yesterday from the US that showed improvement in the initial claims yet poor TIC flows. The financial turmoil is major factor in the euro zone that is weighing on every major sector in the nation, because with loans being provided to consumers or businesses, there will be a lack of spending and investments in the nation which means that less money is flowing in the region which will negatively affect growth prospects while hold back the zone in recession. The Euro declined against the Dollar after rising earlier today to set an intraday high at 1.4165 to trade around 1.4110 while also recording a low of 1.4053, the pair seems to be heading to the upside over the short term, The British Pound also declined back against the Dollar as the pair is now trading around the 1.6410 levels after recording a high of 1.6478 and a low of 1.6300 The Dollar declined against the Japanese Yen as investors shunned their risky assts and headed back to safety measures. The U.S. dollar managed to gain back against major currencies, as uncertainty over the outlook continue to overshadow strong earnings from several companies and accordingly the dollar was able to erase earlier losses against major currencies.