• GDP seen falling 0.4% this year, growing 0.6% next year, rising 1.7% in 2012
  • Deficit to fall to 7% of GDP next year, 1% above target
  • Spain says IMF forecast too pessimistic
  • IMF says banking reform needs to be accelerated

Pretty downbeat by IMF statndards as the genrerally try not to trod on too many toes…

EUR/USD is firm , however, at 1.3065.

It’s all about position squaring at this point. Most will wait until next week for fresh spec activity.