By: IntegrityFX
Looking at what happened in the S&P 500 today, it looks as if the market has begun to move toward gains for the time being. However, looking outside of equities at commodities and treasuries the day did not look so good. Treasuries were down; however they did not even give up what they gained last Friday, so treasuries are still signaling risk aversion. And while oil gained on the day, it was close to flat. So for tomorrow, we are expecting gains in equities to be given back and heavy risk aversion to permeate all markets.
Taking a look at the Forex market for what to do in the face of risk aversion tomorrow, GBPUSD offers up a strong position to sell. The British pound is closely tied to equity markets so the pair will fall relatively more than other pairs. Additionally, the GBPUSD is relatively high when compared to it’s prices over the last few weeks. Daily Currency Pair Analysis GBPUSD: If tomorrow’s US session shows to give way to risk aversion, look to sell the GBPUSD.