Forex Trading Video: Risk Aversion Has Not Hit Stride, Pound Top Trade Risk
• Equities dropped Monday on fresh Russia concerns and weak data, but risk trends have yet to collapse
• A market-wide deleverage and risk aversion will see a flight across the various assets classes
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The picture looked right for a 'risk aversion' assessment. Equities closed in the red, geopolitical tensions were crowding out the headlines and manufacturing data disappointed. Yet, the market's are trading as if a strong risk aversion theme were carrying momentum. Where stocks were suffering, we have not seen emerging markets, yen crosses or other sentiment stalwarts throwing in with the negative bias theorem. Momentum is born from an underlying fundamental drive to reposition - not technical breaks from one benchmark or asset class. We discuss the market's current risk profile and the upcoming session's top event risk - UK CPI for a particularly exposed British pound - in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.