The drumbeat for the decline of the dollar picks up as we start another trading week off. China once again talk about he they may/should/are/are thinking (via Market Watch) about moving away from the dollar:

The dollar fell against the euro and the yen in Asia on Monday after an official newspaper of the Chinese central bank said China should cut its U.S. dollar holdings, adding to concerns over the unit’s global reserve currency status.

The dollar could weaken further later in the day, particularly against the risk-sensitive euro, which is also benefiting from stronger share markets, dealers said.

During morning trade in Tokyo, the People’s Bank of China-affiliated Financial News reported that China should shift more foreign reserves away from the dollar and into the euro and yen.

I am very nervous about this week (financially).  Here is why:

1. Capmark going under right on the heals of 7 banks closing down Friday
2. China feels the need to talk about moving away from the dollar (please see point 6)
3. CIT has the 10/29 deadline they are facing
4. Major companies report this week (industrial, some banks)
5. European Council meeting (late week) which will talk about the impact of the falling dollar
6. Q3 GDP numbers expected (Consensus is 3.0%).
7. HUGE U.S. bond auctions all week - roughly $124B

While every week has plenty-o-things going on, the stress levels ebb and flow.  Right now, when one looks at all the data, it almost feels like the financial market is on the crest of a wave about to crash.

I’m all for positive; however, just pay attention.

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