Germany’s IFO, France’s Insee and and Itay’s ISAE have revised lower their eurozone growth forecasts for Q4 2008 and for Q1 2009. Q4 will contract 0.46, they forecast versus previous forecasts for a flat quarter. Q1 will contract 0.4% versus an earlier forecast for a 0.1% rise.
EUR/USD is consolidating after a furious morning rally in the US. Poor labor data, lousy Christmas sales and fears of funding problems regarding the massive amount of US debt to be issued in the months ahead are combining to spook investors. It trades now at 1.3720 after brushing 1.3800 at its peak.
