New York Session – January 18, 2012 4:06 PM

The dollar traded on the back foot against all of the G10 currencies as risk sentiment was given a boost on a proposal by the IMF to increase its lending capacity by $500B and as talks were held in Athens on Greece’s PSI. Not all was positive though as the World Bank announced it cut its global growth forecast to 2.5% this year from the previous estimate of 3.6% – this puts global growth in recessionary territory which is said to be below 3%. The bank noted that the euro area may contract -0.3% (prior estimate +1.8%). Full text »

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