ForexSpace.com - Forex news hounds, currency traders and top forex brokers among us will be focusing on this afternoon’s release by the International Monetary Fund of its World Economic Outlook report, replete with global growth data. The figures are as authoritative as estimates can be; thus, they will provide good signposting for market players pondering the fate of the euro zone, UK, US and beyond.

Meanwhile, it appears that Japan has pledged $60bn in loans to the IMF - the first nation outside of the EU to empty a shed-load of cash into the embattled currency bloc’s crisis fund. This move, which will be formally announced later this week, signifies a crucial bolstering for IMF funding, expected by market watchers to open the way for ensuring an end to the crisis, not only for the euro zone but also for Japan and Asian countries.

Commenting on the Japanese news, IMF managing director Christine Lagarde (pictured) confirmed her gratitude for Tokyo's leadership and strong commitment to multilateralism, “and I call on the broader fund membership to follow Japan's lead.”

The IMF hopes to gain governments' agreement to raise its funds by more than $400 billion, around two thirds of the amount it said it would need three months ago. Speaking this morning, Madam Lagarde also praised reform efforts by Italy's government, stressing how market confidence had improved since Rome agreed to enhance surveillance by the IMF. She also saw progress in Spain, commenting that she hoped this week the IMF could reach the critical mass of more than $400 billion. “We are determined to do all we can," Lagarde was quoted as saying.

Alistair Cotton, senior analyst from Currencies Direct, told ForexSpace.com: “The European debt situation also remains the key driver of Euro market sentiment with concerns about Spain and Italy currently dragging the single currency to a three-month low against the pound. The European Central Bank has done a good job in buying time for politicians to come up with lasting solutions to the Euro’s structural problems, but we now need those politicians to deliver policies which will protect the Euro from eventually breaking up.

 “The US dollar initially tracked the US recovery in the first quarter which was driven by an improving labour market, but progress now looks to be stalled. With the prospect of more QE in Q3 this year, the US dollar looks set to return to the risk-on, risk-off pattern that dominated dollar trading in 2011,” concluded Cotton.

 Drew Hillier. Editor