The GBP/USD currency pair, which expresses the value of the British pound sterling in terms of the U.S. dollar, has in recent times demonstrated a willingness to rally in good times, and sell off precipitously in bad times. That is, in coordination with global risk sentiment.
Traders typically look to short so-called commodity currencies such as AUD and NZD, when seeking to express a negative view on risk. The economies of Australia and New Zealand have significant export exposures to commodity products, and their countries' terms of trade tend to correlate positively with global commodity