FXstreet.com (Barcelona) - Swine flu has had its impact on Forex markets, USD and JPY have been favoured by risk aversion, while GBP and EUR have been driven to recent lows.

According to the UBS Bank, swine flu has been the main reason for recent Euro and Pound declines: While all currencies were shaken by the swine flu, risk unwinding continued to support the JPY and the USD and put pressure on the EUR.

UBS Bank advices caution on Euro positions while swine flu concerns remain present: We recommend to obey any stop-losses on open currency positions and wait until the dust settles, before entering e.g. new EUR long positions.

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