Dealers are blaming “Microphone” Chuck Schumer for halting the dollar rally, as he told CNBC that he and the rest of Congress have not been briefed on any potential plan from Treasury to soak up toxic assets. Rumors had circulated earlier is that is how the plan first surfaced in the press, leaked from the Hill. Also undermining the dollar were headlines that no bids for WaMu had been submitted at its auction.
EUR/USD reached 1.4355 on the rebound after holding support in the 1.4270 area. 1.4385 is near-term resistance.
