the statement was also accompanied by the resignation of Rick Wagoner, the CEO of General Motors.

Investors were hoping the Obama Administration will help the auto industry, as the industry is facing its worst conditions since the 1980s, this indeed might intensify the ongoing recession, especially as credit becomes scarcer amid the worst financial crisis since the Great Depression.

The Japanese Yen and the U.S. dollar were able to gain this morning, as investors dumped their higher yielding assets, as the Euro declined against the U.S. dollar back to the $1.32-$1.31 levels, while the Pound also dropped against the Dollar back to the $1.41 levels, meanwhile the Dollar dropped against the Yen back to the 96 levels.

Meanwhile stock markets dropped in Asia this morning and the European session will probably join in red as pessimism grows and investors realize that the credit crisis is still not over yet, and that the aftermath of this crisis is yet to materialize fully.

Back to today’s fundamentals, as the Bloomberg Retail PMI will be released today from both Germany and the euro zone, while the euro zone will release today their confidence index for the month of March. The business climate index is expected to rise slightly to -3.48 from the prior reported estimate of -3.51, while consumer confidence is expected to weaken to -34 from -33, the economic confidence index is expected to remain steady at 65.4.

The industrial confidence is also expected to remain steady at -36, while the services confidence is expected to weaken further to -24 from the prior reported estimate of -23. The euro zone confidence remains very weak as tightened credit conditions, falling domestic demand and falling exports continue to weigh down on economic growth in the 16-nation economy.

The euro zone economy continues to suffer the aftermath of the worst financial crisis since the Great Depression, as the area’s major economies continue to fall deeper in recession led by the area’s largest economies.

Germany, France, Italy, and Spain all continue to fall deeper in recession, forcing the European Central Bank to reduce its benchmark interest rates, however the ECB has been under criticism for taking rather a rigid stance when it came to monetary policy easing, especially as central banks around the world have been implementing aggressive monetary easing and even some of them started quantitative easing in the most unorthodox measure taken so far.

The ECB on the other hand has been rejecting calls for aggressive easing by stressing that the euro zone area is in a better place than everyone else, yet I think we all saw that this decision in particular came down to hunt them back.

The ECB recently have been signaling that they won’t cut their interest rates down to zero, meanwhile the ECB Chairman Trichet rejected calls that they will start undertaking a quantitative easing policy, but rather other “non-standard” policies, well I hope Trichet can convince the Economic Committee of his views as he speaks before the European Parliament today.

Moving on to Europe’s second largest economy, the U.K. economy is also undergoing recession amid the worst financial crisis since the Great Depression, as slowed consumer spending on the back of tightened credit conditions, rising unemployment and falling home values forced the Bank of England to cut its benchmark interest rates down to the lowest in its history.

The U.K. will release today their net consumer credit for the month of February, the index is expected to remain steady at 0.4 billion pounds unchanged from the prior estimate, while net lending secured on dwellings are expected to rise to 0.9 billion from the prior estimate of 0.7 billion pounds, while mortgage approvals are expected to rise by 3,000 to 34,000. The U.K. will also release their M4 money supply index for the month of February.

Consumer confidence continued to drop in the U.K. as the economic conditions continued to hurt Britons and further suppress their spending, leading the economy to fall deeper and deeper in recession despite the hefty measures undertaken by the BoE and the British government so far. The GFK consumer confidence index s expected to remain unchanged at -35 in March inline with the prior estimate reported back in February.