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Time to Take on Some Risk?

Wednesday, 12 Oct 2011 | 1:49 PM ET
Pando Hall | Digital Vision | Getty Images

Risky assets have gotten pounded in recent weeks, and this strategist thinks the worst may be over.

Willie Williams, director of global macro sales at Society Generale, is ready for a change. Noting the beating that commodities, equities, and other risky assets have taken lately, he thinks the time is right to wade back into risk-on currencies.

Williams told CNBC's Melissa Lee that he recommends buying the Australian dollar against the Swiss franc at 0.9050, with a stop at 0.8850 and a target of 0.9600.

Money In Motion: Global Markets Priced in Worst?
Insight on whether the worst has been priced in for global markets and what your next trade should be, with Willie Williams, Societe Generale director of global macro sales.

"Over the month of September we saw commodities sell off very hard, we saw equities sell off very hard, and emerging markets as well," he says. Williams also notes that Australian economic data is stabilizing, and with potential new policy initiatives in the euro zone, "I think we're at risk of seeing the rally in risk assets continue."

There are other risk-on currencies Williams could trade, like the euro. But, he says, "there are still a couple of minefields" ahead for the single currency, and the Australian dollar is a better proxy for both emerging-market sentiment and commodities.

You can watch the whole discussion on the videotape.

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

Learn more: The essential vocabulary for currency trading is on Key Currency Terms. Top currency strategies are broken down for you in Currency Class.

Talk back: Tell us what you want to hear about - email us at moneyinmotion@cnbc.com.

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