Again markets are battering their economic outlook after the credit turmoil affected their economies and how much further proof is needed to confirm US headings into recession, and what extent of damage will that burden global growth.

The euro is unlocking the past appreciation against the dollar after last week's confirmation from the ECB of downside risks to growth, investors are redoing the math after all perceptions were to an immune EU economy from all the turbulence; yet that said the outlook for the euro remains more positive than the dollar for time being until further confirmations from both economies. The euro fluctuated to the upside in Asian trading this morning leaving the high intact at 1.4576 trading lower from that point away from the 1.46 figure, losing ground against the Japanese yen as well as investors are still giving back their yen funded positions as the pair slid to record a low of 154.80; and currently the 15 nations currency trades against the dollar around 1.4555s at the time.

The pound regained upside momentum empowered by strong fundamentals, better than anticipated housing and trade data, that and surging prices at factory gates to the highest since records began while factories raised prices in January at the fastest annual pace since 1991, that further confines the BoE from easing the monetary policy in March to stimulate economic growth which is spreading signs of easing, and ahead of key data later in the course of the week, such as employment, consumer inflation, and the long awaited February BoE Inflation report which will have the final word regarding BoE headings. The pound gained on the back of the data to set the high at 1.9529 after consolidating in early trading hours in a very tight range, and the royal pound is at the time gaining against the euro after the pair set the high at 0.7508 it took the pair to set the lowest at 0.7452 as the pound gained all its acquired losses since the morning taking the pair to trade near opening levels.

The Japanese yen is still gaining against the dollar on the back of unwinding of risky assets, despite markets in Japan, China, and Taiwan are still closed for a public holiday Asian markets were still down after G7 comments from Tokyo about global effect from credit turmoil and fears of economic slowdown especially in Japan; the comments from finance ministers did not count for much yet they still affected the volatile yen. Against the dollar the yen gained taking the pair to as low as 106.33 leaving its opening levels the highest for the day; not much is expected as the US enters the markets as we are not waiting scheduled released for today, nevertheless the yen will be volatile to any changes in US equities and whether US stocks are going to hint for further gains for the yen to come or not.