The IFO institute have announced that their previous forecasts for 2009 and 2010 growth are too pessimistic and that upward revisions are planned. They add that growth of up to 1% is possible in 2010 and that 2009 is likely to be better than -6%. Elsewhere an IMF spokeswoman says that a global economic recovery is in sight and may be a little stronger than expected. She stresses that the recovery is still likely to be muted and policy supports need to remain in place. Finally a few comments from a G7 source that syas that they do not expect much discussion of the status of the Dollar as a reserve currency at the upcoming G20 meeting, echoing comments made from the Russian Deputy FinMin made a few days ago.
The dollar has lost a bit of ground in the last hour or so, with Eur/Usd now back at 1.4265 after hitting a low at 1.4220 when stocks were at the height of their sell off. Cable has even rallied now above 1.62 as 1.6150/60 support holds once again.
