Printable View
Investor confidence remained high Tuesday despite recent concerns about an outbreak of Swine Flu, the epicenter of which seems to be around Mexico City.
Worries about the disease have begun to surface more frequently as health officials have now confirmed that 8 U.S. states have infected inhabitants, possibly with more to come. Governments are doing everything they can to halt the spread of the Swine Flu, which has only been found in 90 people so far during the outbreak.
Finally, something to take our minds off of the economic crisis and all that goes with it, a health crisis - or pandemic as they are calling it. Yesterday, the World Health Organization upgraded the threat to a 4 on a scale of 1-6, 6 being global - out of control - rampant infection. But the crisis is affecting more than just border crossings - it is contributing to the downfall of some of the worlds most fragile economies, the emerging markets.
As news of the Swine Flu virus spread, the Mexican Peso, the currency at the heart of this epidemic, fell over 5% to the US Dollar and similarly to many other majors. This is just another blow that the Mexican economy has endured and it threatens to collapse the country's economic system. Although it is a small market, online Forex traders should be keeping an eye out for this, as what happens south of the US will no doubt affect the US.
Mexico has some real problems.
Yes, at the heart of the flu epidemic is Mexico, which announced on Monday that out of 2,000 people thought to be infected with the mutated version of the Swine Flu, 150 people have died. We rarely focus on the Peso, however as this is a story that has made front page headlines across the globe, it is relevant here.
On Monday, the Mexican Peso fell over 5% to the US Dollar to 13.9945 and fell more than 3% to the Euro to 17.861, 4% to the GBP to 20.508 and 4.5% to the Canadian Dollar to 11.477.