Forex Investment and Currency Trading

With risk appetite already fragile, swine-flu outbreak will strengthen aversion plays
WHO meeting on 28 April critical in shaping confidence and expectations
Tourism, retail and stretched budget deficit economies are potentially at risk

 
The situation is changing at a rapid pace and, with widespread media coverage, there are a huge array of forecasts being made.
As the toll within Mexico rises, early indications are that of the 149 recently reported flu-related deaths, 20 have been confirmed as caused by the new swine flu virus. Suspected swine flu cases in Mexico have risen to 1,614.
Early signs suggest a global impact, with confirmed swine flu cases [...]

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Options provide you with opportunities to profit from, or hedge against, anticipated movements in the price of an underlying asset by buying or selling call or put options. You may do this by pursuing a number of different strategies. The following possible applications are presented as examples of these.
Speculation on falling interest rates by buying a cal (long call)
In return for payment of a premium, you as the buyer of an interest-rate call acquire the right, but not the obligation, to purchase a particular bond (underlying asset) at a pre-agreed price on a pre-agreed date. You as the buyer anticipate [...]

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Unwelcome echoes of SARS fill the news headlines this morning, with the market focused on the “swine flu” public health emergency; the MXN has been hit hard by expectations that the outbreak will hit the tourism sector and the broader economy but with cases noted across North America and in the
EU, many other economies are potentially at risk of a broader “pandemic”. The EU has advised against non-essential travel to infected areas. The financial markets have switched quickly into risk-averse mode this morning, with equity markets dropping sharply early morning and higher risk currencies under performing while the JPY out-performs. [...]

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Fears of a possible “Swine Flu pandemic” have dominated the global headlines. As a result, there has been a noticeable shift in risk sentiment to risk-off. Overnight USDMXN gained more than 3.5% at one point. The poor liquidity in addition to pandemic fears may have contributed to the gain. The Euro also reversed from last weeks highs as a result of levered selling in Asia and the Eurozone. The Pound also sold off overnight and Yen crosses have been lower. AUDJPY will be a key risk proxy for today. In Asia AUD closed below its 200dma of .7249. A close [...]

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