A large writedown by a US investment bank, another hurdle for the greenback

[RTFXtrading]

Another hurdle for the dollar as a large US investment bank reported a large writedown. A $5.7 billion write down for the third-quarter followed by share selling to raise $8.5 billion was announced by Merrill Lynch late Monday.

Concerns continue to loom over the deterioration of US financial sector, but this is not limited to the US. Global financial market stays frail according to the IMF. In Europe shares drop quite sharply at the opening on Tuesday morning. The SMI down 1.30%, the CAC40 1.21% and the DAX 1.06%.

The dollar is flat for the time being trading in range 1.5725-57 against EUR, 107.30-73 against JPY and 1.9921-68 against GBP. We’re waiting for the unemployment rate on Friday.