IMF outlook gives reflation trade a breather

The gloom surrounding the global economy has lifted slightly in the wake of an upward revision to the IMF’s global GDP forecast for 2010. The see growth at 2.5% versus 1.9% forecast earlier.

EUR/USD has recovered to the low 1.39-teens from the 1.3.880s and USD/JPY is up to 94.25 from 94.10.