In the latest of the German Bundesbank’s bi-annual economic forecasts the German central bank has slashed its forecast of a contraction of 2009 GDP of 0.8% to a contraction of 6.2 %. echoing comments from their President Weber in recent times they expected the pressure on the economy easing in 2009, but no major near term recovery and again highlighted the forecast that annual inflation would fall below zero in coming months.
FX markets are taking a well deserved breather ahead of the NFP’s later today with Eur/Usd in a tight 1.4180-1.4230 range