IMF in a report says that they see a 25% chance of a global recession and the US was likely to enter mild recession in 2008

• US demand to be 'sickly' in 2008 due to credit and soft labor
• Fed may need to continue to cut rates
• Japan GDP 1.4% versus 2.1%
• Eurozone GDP for 2008 1.4%.  Says ECB has some room for easing
• Eurozone inflation easing in 2009
• BOE has room to ease due to worsening outlook
• China's currency remains undervalued
• Cuts global growth to 3.7% from 4.2%
• Dollar still somewhat on the strong side
• Urges additional initiatives to help US housing market
• Urges central banks to give more weight to housing prices in adjusting monetary policy

The report is somewhat more bearish for the dollar but sees economic weakness across the major economies.  If that points to lower stock markets, then typically the risk trades come under pressure.  This is what we initially saw.  The GBPJPY came down to support level in the previous post and stopped.  So the push from the report may start to wane and the market settles in once again.  Watch the 201.65-75 area for clues.