In a forecast prepared for the G20 meeting, the IMF sees the first decline in global growth since WW2.
Further to our inflation piece a short while ago, we are joined in our assessment by no less than Goldman Sachs. Chief economist Jan Hatzuis says deflation is a much greater concern than inflation at present and that the Fed may need to leverage its balance sheet by a far greater extent than it has to date to pull the economy out of its slump.
US equities have dipped into the red and profit-taking is seen on the early moves from this morning. EUR/USD trades at 1.3635. Support is not seen until 1.3530/35.
