The dollar fell against the euro and yen, as worries about the state of the US financial market due to earning reports from banks being published this week.

The dollar could also face a more worrying period as a glut of US economic news comes out this week. Traders are anxious to hear speeches from the Philadelphia Fed today and New York Fed and the SEC chairman on Thursday in front of a House Financial Committee.

Key US data out this week includes June’s existing home sales on Thursday and new home sales data on Friday.

According to Josef Ackermann CEO at Deutsche Bank nerves are on the up in the financial markets down once again to the fears and uncertainty over the US sub primes.

Some markets he said had gone back to normal, whilst others remained in a panic state. He emphasised the need for greater clarity in banks and financial institutions disclosing losses and market prices. Financial confidence will return and it is expected that the economy will be much stronger.