Tim Geithner continues to testify on the Hill. He describes the global economic economic crisis as deepening and accelerating as way to smooth the way for the $3.4 trln Federal budget next year.

The equity market is rebounding this afternoon after a scolding from President Obama. Damn, that guy’s good.

EUR/USD and EUR/JPY are both rebounding along with Wall Street. A close above the 700.00 level in the S&P index would be a relief. Small offers at 1.2595/00 are eyed near-term with more substantial selling seen toward 1.2650 where a European bank sold heavily during the US morning.