An aide to Senate Majority Leader (and undertaker look-alike) Harry Reid says that the Senate is unlikely to pass broad economic stimulus this year. Reid will have a much larger Senate majority to work with after the turn of the new year.

Equities are modestly positive after a 2% dip early in the day. EUR/USD trades close to session highs, now at 1.3735. 1.2800 and 1.2850 are resistance on further rebounds.