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Forex Flash: IMF forecast makes grim reading for Eurozone policymakers - BTMU

FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the release of the IMF forecast projections yesterday makes grim reading for policymakers in Europe.

While most of the downward revisions to real GDP growth in 2013 reflected weaker growth at the end of last year, halpenny sees that there were only unchanged or downward revisions to 2014 projections also, underlining the grim outlook. Elsewhere, he notes that the UK came out worst with a 0.3ppt downward revision to both 2013 and 2014 growth levels to now stand at 0.7% and 1.5% respectively. He writes, “The 0.3% contraction predicted for the Eurozone this year was not just due to the periphery and the IMF now believe there are doubts over the ability of the core to help the periphery. The scope for the euro to advance from here is very limited and we maintain that an ECB rate cut and other measures are probable. The minutes from the BOE meeting and employment data from the UK are the key events in Europe. Another 6-3 vote for unchanged policy is likely.”

UK: Claimant Count Change falls further in March against expectations

The number of unemployment people in the UK fell by 7K in March, following a 5.3K drop registered in February, National Statistics reported on Wednesday. Market consensus pointed to no change. The Claimant Count Rate was at 4.6% for the second straight month, against forecasts of +4.7%.
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Forex: EUR/USD jumps from 1.3160 support ahead of EMU data

After falling to as low as 1.3153 on the European opening and testing the 20-day MA support at 1.3160, the EUR/USD finally jumped higher again ahead of the EMU construction output and German 10-year bond auction, returning to the 1.3188 high.
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