Will it have any effect whatsoever? I should think in the grand scheme it should not, however who can account for human psychology? And LEH is not the only problem obviously. So will the recent reversal in favor of the EUR gain more steam this week?
No. It's bullish for the dollar because dollars are being destroyed faster than they can be printed. It's a form of "deflation".
well i guess it depends on if everyone is bailed out. if they are then i think the dollar must continue lower even if its slowly. equities may stabilize and rally. if however leh, mer, aig etc were allowed to fail and it caused others to fail after then there would be a bit of a meltdown, equities might stick at these lows range trading for a while and the dollar would prob rally for years...
In Sunday afternoon trading (its Sunday afternoon where I am!), the $ has fallen nicely against the Euro, Swiss, and Yen, just marginally against Cable.