FXstreet.com (Buenos Aires) - U.K. Chancellor Alistair Darling has admitted that he and his Treasury officials got it wrong over the length and severity of the recession and that he will be forced to tear up his economic predictions. The growth forecast is expected to be slashed in the budget to be release on April 22nd, and he also warned that there will be no economic recovery until the end of the year. It's worse than we thought, Darling said this weekend.

Euro open firmer in early interbank trade, reaching 1.3515 close to last Friday's high. Japanese yen is also appreciating but still above the 100.00 level, after Donald Tsang, the Chief Executive of Hong Kong, said the territory is facing its greatest economic challenge since World War II, adding preparations are being made for a more stimulus if it becomes necessary. He also said Hong Kong's economy might contract more sharply, closer to a 3% than government forecasts of 2%.