Obama’s budget is hitting the screens and the numbers are nothing short of staggering. The deficit is projected to reach $1.75 trn this year and and $1.2 trn next year. As a percentage of GDP, we will have the largest deficit in post-war history (by a long, long way). The debt/GDP ratio is Italian in its scope and will keep Treasury investors nervous until they see the green-shoots of economic growth.
EUR/USD is consolidating in the 1.2735 area while USD/JPY has run into offers at 98.20/25. One dealer describes them as “semi-decent” in size. Dealers ain’t the most articulate lot…
