My pick: Short sterling-dollar, long Aussie-yen and euro-sterling
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
Full-scale risk aversion is a scenario that constantly circles the borders of the financial markets, but positioning for catastrophe is a game fraught with false starts. Until we have confirmation, trades based on relative monetary policy are better suited. I like Aussie-yen bouncing from range support at ¥90 as a moderation move. Euro-sterling reversing off a large wedge floor near £0.8225 trims the Bank of England outlook. And sterling-dollar breaking a $1.6250 neckline promotes the Fed taper.