2009 remains dangerous year – World Bank’s Zoellick

World Bank President Robert Zoellick has written to G8 host Berlusconi, copying all G8 leaders.

Zoellick warns the G8 officials that they should not presume a global recovery is near. While interventions by central banks and governments appear to have “broken the fall in the global economy” by stabilising financial markets and boosting demand, Zoellick warns that “2009 remains a dangerous year” adding “recent gains could be reversed easily, and the pace of recovery in 2010 is far from certain.”

The official goes on, “I recognise that some developed countries are now considering a policy mix that assumes the recovery is at hand. But for the developing world, it is far too early to think of such measures.”

EUR/USD and GBP/USD sit pretty much on session lows, presently at 1.3905 and 1.6100 respectively, risk aversion to the fore.