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WASHINGTON (Dow Jones)–Economic data Thursday suggest the U.S. economy ended 2007 with a bit more steam than once thought and that labor markets started the new year on a firmer tone, easing some of the worst fears about the state of the economy.

Still, sluggish reports by U.S. retailers for December served as a reminder that even if the U.S. escapes an outright recession, the first half of 2008 will most likely be much weaker than the latter part of 2007. Read more

Written by Terri Belkas, Currency Analyst

Normally, the release of US Non-farm Payrolls takes center stage in the forex markets, as the figure tends to spark significant volatility and can shape interest rate expectations for the Federal Reserve. However, Wednesday’s FOMC rate decision may steal the limelight, as futures are currently pricing in an 82% chance of a 25bp cut to 2.00% and an 18% chance that the Fed will leave rates unchanged.

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New figures from Access Economics show Tasmania’s economy is in a strong position, and business confidence is growing.

However Tasmania’s Chamber of Commerce and Industry (TCCI) is not convinced it is all good news. Read more

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An international early warning system should be established to ensure that future credit squeezes are identified and dealt with before the effects become widespread, says Gordon Brown.

In a foreign policy speech in Boston, the Prime Minister urged America to join him in pushing for reform of the major international institutions including the International Monetary Fund and World Bank. Read more

LONDON (Thomson Financial) - The dollar and pound remained weaker against other major currencies after a report from the International Monetary Fund slashed global economic growth forecasts, particularly for the United States and United Kingdom. Read more

The Philippines’ gross international reserves, or GIR, reached a record $36.5 billion in March, rising mainly due to accumulation of dollars by the central bank and income from investments abroad, the central bank said. Read more

HwangDBS Investment Management Bhd chief investment officer David Ng said firstly, investing should not be about chasing the latest fad as doing so could work against the investor.

“Investors must always bear in mind their personal investment goals, risk tolerance level, time horizon and then asset allocate accordingly.”

“We think investors should consider having exposure to low-risk income-type funds as the returns from such funds will hopefully offset the impact of inflation on one’s purchasing power.

“Another interesting alternative would be to invest in commodities due to their historically low co-relation with the equities markets,” Ng said . Read more

The dollar has just hit a record low against the euro and equities have extended Tuesday’s record breaking rally. And, like the broader financial markets, activity in the credit and money markets have seen a sharp spike in volatility recently stoked by inflammatory economic data and exogenous event risk that was both threatening and promising. By the end of last week, credit conditions were taking a severe turn for the worse. Lending activity was already being constricted owing to the tighter borrowing requirements following record losses reported by Freddie Mac and Fannie Mae. This was only exacerbated after indicators reported the service sector was contracting and employment fell for the second consecutive month. With dual concerns of an impending recession and deepening credit crunch, the outlook was bleak. However, when conditions seemed to be at their worst, the Fed once again stepped in with an expanded effort to revive liquidity.

Written by John Kicklighter, Currency Analyst for FXCM