Swine Flu affects currencies
As if there was little volatility in exchange rates, particularly the euro dollar exchange, now comes this plague which adds further uncertainty to the ailing global economic situation.
Experts have acknowledged that they are little more than lost on the foreign exchange market trends. As if what they hope for the future is a lateral movement, delimited by a band of values between a maximum of 1.34 and a minimum of $ 1.25 per euro. In the medium term is expected, then, that the exchange rate can have abrupt changes up or down but not out of this band.
However, it was swine flu, and this adds uncertainty. The argument
The disease will act as a further factor of instability in financial markets and therefore the extent in which it will spread, will outweigh negative element considered riskier currencies. Given the fragile economic situation in Europe, we expect that investors opt for another currency.
Tags: economic, Exchange rate, financial markets, the euro.