- Swine flu jitters dominate market attention; 149 dead in Mexico, US suggest Americans avoid unnecessary travel to Mexico. 40 confirmed cases in US. 2 in UK
- Photo shoot of Air Force One over Statue of Liberty causes brief panic in New York
- GM announces debt restructuring plan
- World Health Organization says may raise pandemic alert level to 4 on a 6-point scale
- 6.0 earthquake in Mexico
- ECB’s Nowotny: ECB rates may stay low for some time, unconventional policy may be used
- Trichet: Lowering rates not always the best course
- Copper falls 3.9%, oil down 2.75%
- US shares fall 1%
The dollar and the pound were the big winners today as the euro and commodity currencies gave ground. The buck was up on risk aversion as the swine flu outbreak centered in Mexico continued to spread and prompt those with positions to head to the sidelines. After a strong rebound late last week, EUR/USD suffered the most, slipping to 1.3002 from close to 1.33 on Friday6.
AUD/USD was hard hit today as fears of a global pandemic crimped hopes for a quick rebound in nations like China that consume Australian natural resources. It dipped below 0.7100 during the afternoon before heading out just above that level at the close.
Cable was underpinned throughout the session as EUR/GBP fell hard. Technical sales and demand for the pound for dividend payments by UK-based multi-nationals helped knock the cross below 0.8900 intraday.