Few are willing to marry positions today, content to take advantage of good intraday volatility to trade in and out of positions. Offers have come in above the 1.3710 level dealers report while stops are beginning to build below 1.3650.

The market is taking in stride the CBO (Congressional Budget Office) forecast for a fiscal year 2009 deficit of nearly $1.2 trln. As the PE told us yesterday, we’ll see trillion dollar deficits for years to come.