Dear Reader,

Here is an overview of today's economic news and market action:

• Equity markets finished flat for the day yesterday …
• Currency-wise, the main pairs remained confined to tight ranges …
• Of the limited moves to register, sterling was slightly firmer ..
• EUR/GBP opens this morning in the lower half of 88-89p …
• GBP/USD is operating near the midpoint of $1.24-1.25 …
• EUR/USD is above the halfway mark of $1.09-1.10 …
• Busy US data docket today …
• Latest ECB monetary policy meeting account are also due …

A Cautionary Tale

The latest quarterly update from the IMF on the outlook for the world economy published last week saw little change to its forecasts from those issued in January and last October.

Storm Clouds Gathering

• The latest quarterly update from the IMF on the outlook for the world economy published last Tuesday saw little change to its forecasts from those issued in January and last October.

• Economic data have generally surprised to the upside in first quarter, helped by easing inflation. However, possible credit crunch and tighter lending standards new risk to activity