The USD remains weak, EUR/USD up at 1.3785 from a North American close Wednesday around 1.3770, while cable is up at 1.5780 from around 1.5745. The USD is being underminned by the news yesterday that the FOMC discussed adding to its bond buying programme in April , just over a month after it announced it would purchase $1.1 trln of agencies and treasuries.
The JPY is benefitting marginally from a very slight pick-up in risk aversion, with Asian stocks posting across the board losses. The Federal Reserve lowering its forecasts for US economic growth over next 3 years didn’t really help matters.
Elsewhere two major banks are expecting the Chinese economy to start losing momentum in coming months.
A survey published by Barclays Capital showed Japan’s money managers judge the market’s outlook for the US economy to be too positive.
Alan Greenspan warns that US banks need to raise “large” amounts of money saying “We’re on the edge and if this thing doesn’t get resolved quickly, I’m worried.”