Forex pairs in this Article » AUD/JPY
FXstreet.com (Barcelona) - In anticipation of potential risk off swing in the FX market ahead of the US fiscal cliff, HSBC FX Team is suggesting to their largest clients to look to the currency crosses rather than the USD itself. As noted by David Bloom, FX Strategist at HSBC, ans the rest of his team, "as US fiscal worries mount in the months ahead we are concerned about a generalised USD sell off. Others, however, argue the risk off nature of the USD will have the market clamouring for dollars." What HSBC finds that AUD, CAD and NZD tend to be the worst performers when US equities fall whilst the JPY and CHF are commonly the two currencies topping the leaders-board. However, in view of HSBC, "with the CHF now largely out of the equation due to intervention, AUD-JPY becomes the best trade to express a view on the fiscal cliff."