Italy economy to shrink 4% in 2009- think tank

Think tank REF has cut its forecast for Italian 2009 GDP. It now expects a 4% contraction compared to earlier forecast of a 2.5% fall.

In the forex markets things are rather quiet, maybe eerily so. EUR/USD sits at 1.3005, pretty much where we came in, an earlier rally fizzling out rather quickly. Risk aversion would appear to still dominate.

Buy orders seen at 1.2980 down through 1.2950, sell orders up at 1.3080.