• G8 plans to reverse stimulus as rebound grows
  • Iran’s Interior Ministry: Planned pro-Mousavi rally illegal. Rally later postponed
  • IMF’s Strauss-Kahn: “Large part of the worst” in global economic crisis is no yet over. Ouch
  • Swiss producer import prices -0.3% m/m, -5.0% y/y, weaker than median forecasts of +0.1% and -4.7% respectively
  • Kazakhstan sees no need for IMF help despite crisis – Kazakh PM
  • Economiesuisse (largest Swiss business assoc) sees Swiss GDP down -2.9% in 2009, down -0.8% in 2010. Unemployment 4.0% in 2009, 5.3% in 2010
  • IMF’s Strauss Kahn: Still concerned about Latvian budget, impact on poor
  • ECB’s Tumpel-Gugerell: Cannot yet speak of an end to the difficult period facing financial and real sectors of the economy
  • Euro zone Q-1 employment -0.8% q/q, -1.2% y/y. Biggest quarterly and annual drops on record
  • ECB’s Orphanides: Vaguely positive signs emerging on world, Europe economy. Rate of decline slowing, but postive signs yet to manifest as measurable improvement of real data

USD, JPY strong this morning, continuing move seen overnight. Risk aversion ratcheted higher, stocks (S&P -11 points), oil down etc.

Official comments from likes of Strauss-Kahn, Orphanides, Trumpel-Gugerell have been pretty cautious, one might say downbeat (see above.)

IMF’s Strauss-Kahn said “Their (G8) stance is that we are beginning to see some green shoots, but nonetheless we have to be cautious” adding “the large part of the worst is not yet behind us.”

He is also worried about Latvia saying “The IMF is especially concerned about the fact that the necessary measures which have to be undertaken to fix the important budget deficit should not hurt the poor, primarily.”

USD has also been bolstered by Russian FinMin Kudrin’s comments that Russia has confidence in the dollar and that there are no immediate plans to switch to a new currency regime.

And according to Kremlin spokesman Sergei Prikhodko BRIC leaders do not intend to discuss new reserve currencies in any great depth at the meeting which starts tomorrow.

Rather they will be concentrating on possible ways to reform international financial insitutions.

Articles by AEP at The Telegraph highlighting Latvia’s ongoing problems and Germany’s deepening credit crisis have been duly noted and have helped dent general risk sentiment and have particularly weighed on the euro.