Reflation is back underway after a reprieve on Tuesday. US equities are rebounding in early trade, up about 1% on average. Gold just shot higher, triggering stops above $934.00. ETFs are blamed for the move, meaning the retail investor is largely behind the move which is never a good sign. Institutional flows have been seen into commodity currencies over the last 24 hours, traders report.
On the wires, new Fed governor Duke says more needs to be done on mortgage modifications to forestall more foreclosures. Housing activity remains extraordinarily weak, she says.
EUR/USD has rebounded to the 1.2970/75 area along with equities.
