Pound Plunges On IMF Data, Worse To Come?

There's nothing quite so British as knowing exactly where you stand is there? It's disorientating when the pound is going up against the dollar. It's sort of un-nerving. A bit like watching Edwin Van der Sar constantly bending down to pick the ball out of the back of the net. You get a weird sense of dreaminess. I'm enjoying this but is it really happening sort of thing.

Well, it's good to know that we are back on the downwards spiral again this morning. Brace yourselves...

The IMF is set to revise down UK growth forecast for 2009 to -3.8% and sees the economy to contract by a further 0.2% in 2010. This is a sharp downward revision from the 2.8% contraction estimated for 2009 in January and against BoE estimates for a pick-up next year.

Reuters is quoting leaked IMF documents for the forecast and the IMF is expect to release new global growth forecasts at the end of the week. Indeed, the IMF warns that the UK recession will be deep and longer than in most other countries.

It could get worse yet as the day wears on with the minutes from the Bank of England's last policy meeting, unemployment expected to top 2 million and details of the government's 2009-10 financing remit all due to be released later in the day.

The pound is currently $1.3927 and 93.45 pence against the euro. There, there, if you say it quick it doesn't seem too bad does it?