GBP/CHF made some very solid gains overnight and GBP/JPY held its own after an initial fall so this is certainly not a full risk aversion play. Sterling was generally the leader of the pack in recent months but as Jamie says below, it might just be a one-off flow holding it up before it falls and starts playing catch-up. Gold and oil in particular have fallen heavily and it looks like futures traders have been ramping up their risk in recent weeks (recent CFTC reports showed EUR contracts at a one-year high) so it’s probably no surprise that we are seeing a levelling out.
The short term trend has turned so selling AUD, EUR and GBP rallies looks like the way to go for the intraday traders.
Good luck today.
