U.S. congressional officials have not completely agreed on the US$ 700 billion rescue package to transfer under-performing assets from banks’ balance sheets and this has limited the U.S. dollar’s upside. Most traders expect some semblance of a final deal will be in place by Monday.

The Federal Reserve expanded its temporary swap facility with the European Central Bank by US$ 10 billion. Dallas Federal Reserve Bank President Fisher said “In this context, inflation concerns appear to have fallen to the back burner. The case for a rate rise seemed both less urgent and potentially disruptive given the clear and present danger of an imploding financial system and the considerable downside risks to the economy should that implosion occur.”

U.S. bank Washington Mutual became the largest U.S. bank failure ever and JP Morgan Chase Bank purchased its deposits. ECB sources said the ECB is unlikely to coordinate concerted rate cuts with other global central banks. ECB’s Papademos reported the economic outlook is uncertain and reiterated price risks are to the upside.

EUR/USD in Monday is high 1.483x

move lowest to  1.461x in friday. Us economy wait for US$ 700 billion rescue package in next Monday