The Australian government is actively trying to cool the rise in AUD, while the euro appears set for a period of rebalance as the region battles economic decline and worries over the impact of geopolitical troubles, particularly in Ukraine and the Middle East.

EUR recently hit a 21-month low against the CHF and was struggling against JPY too, which some consider the most secure safe haven within G10. The threat of war and deflation at a time when other developed economies are deep into recovery does not bode well for the currency.

The key in the short-term will be interest rate decisions in the UK and, more importantly, the US. The markets are expecting the US economy to be strong enough to bear an interest rate hike in the first-half 2015.

If a rise occurs within that timeframe then emerging market debt and currency, which are already being hit by a flight from risk and search better quality yield, should continue to face headwinds.

As ever, traders will be watching central bank action in Europe, UK and US. It could be a choppy ride, but one where the odds seem to have returned in favour of traditional ‘safe havens’.

A safe haven:

• Market size and volume
• Stable interest rates
• Controlled inflation
• Robust balance sheets
• Strong foreign investment positions
• Liquid and robust financial markets
• Low risk of geo-political or financial instability