Following on from the last piece, certainly the USD looks now to be the preferred safe-haven currency but it’s unlikely that the market will be happy with a choice of one currency only. The other currency which is likely to benefit is the JPY if this risk aversion phase takes hold for a longer period. The EUR and GBP are way too dangerous and uncertain, the AUD and CAD are quiet overvalued and the market is already very long of both, and the SNB intervention in the CHF will dissuade many potential buyers. That leaves the JPY as an alternative safe-haven and whilst USD/JPY may move gradually higher, I’d expect the JPY to continue to gain on the crosses. I’m suggesting a gradual rise inside of a tight 91.50/97.50 range but the big moves will happen elsewhere.