The leading German economic think tanks have put out their spring report in which they forecast German GDP will grow 1.5% this year and next. They advise the ECB not to cut rates further, a departure from last fall.
EUR/USD has pulled back below the 1.3600 level as German/Greek bond spreads widen out once again. The 10-year spread has widened to 372 bp from 3.45 when I walked in. Greek bank shares are selling off as well, down 4%, Reuters reports.
