The deficit to GDP ratio will be 9.2% in 2010, they project, down from earlier projections of 9.6%. Lawmakers need to increase revenues and cut spending to keep the Federal debt from harming the economy, the CBO warns.

“Risky” assets are getting a lift after the decent US consumer confidence data and the uptick in the Richmond Fed survey. EUR/USD is now at 1.4070.

Also crossing the wires is news that Bernanke’s nomination will come to a vote Thursday or Friday, according to Majority Leader Reid.