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G7 Preview: Group of Seven to Address Financial Turmoil, FSF, FX Volatility
14:13 04/10 (CEP News) - Proposals made at the Financial Stability Forum and the financial market turmoil are on the top the agenda for North American policy-makers attending the G7 meetings on Friday, while the Europeans might want to see additional emphasis addressing foreign exchange rates. "Ahead of the G7, the FX market may be nervous about the prospect of coordinated FX intervention to rescue the USD following the meeting or some USD supportive statements in the G7 communiqué, which will be released on Saturday," according to Barclays' foreign exchange team. "These nerves as well as any sideline comments by officials ahead of the meeting may generate some larger (than) usual volatility in the USD this week. We see little chance of anything substantive, especially coordinated intervention, coming out of the G7 meeting, however." Ashraf Laidi, chief FX strategist from CMC Markets, said, “Considering that the IMF estimates total losses from the US mortgage fallout to surpass $900 billion, well above the current $250 billion, G7 leaders are faced with (a) bigger set of challenges than overshooting currencies." Full Article available @ [url]http://economicnews.ca/login.php?page=reportsDetails&newsid=70377&prevview=&view=details&country=&plimit=0&category=All%20Economic%20Reports[/url]