Lee Hardman, Currency Analyst at MUFG, notes that the IMF’s second-in-command David Lipton warned yesterday that the world faces a growing “risk of economic derailment”. Key Quotes “He told the National Association for Business Economics that now is the time to decisively support economic activity and put the global economy on a sounder footing”. “The sharp retrenchment in global capital and trade flows “over the past year were cited as amongst the most disconcerting signs of trouble in the global economy. The OECD reported yesterday as well that their leading indicators are pointing towards an easing of growth in the UK, US, Canada, Germany, and Japan. A further loss of growth momentum in the advanced economies alongside the already weak outlook for growth in developing economies would increase downside risks to the outlook for global growth and support safe haven demand for the yen. However, the OECD’s leading indicator did provide a reassuring signal that there were “tentative signs of stabilization” in China.” For more information, read our latest forex news.