Today's Trading - A rush to the Safe Havens

Today's action was clearly safe haven flows. With renewed European sovereign debt issues (especially Ireland), continued U.S. household mortgage debt problems, the possibility of a double dip recession in the U.S., directionless equity markets, concerns over China's growth, and now you can add Japan to this list, market participants were looking for safe havens. This lent a firm bid to the CHF, Yen, and Gold. For most of the summer, when ever we had a risk sentiment change from risk appetite to risk aversion the USD was the main beneficiary of the safe haven flow, but not today. As some thing changed? Perhaps the market senses that the Fed is about to embark on QE 2.0. Look at the market's reactions to today's Japanese GDP data. Their economy grew by a mere 0.4% during the last quarter while the market was expecting an increase of 2.3% yet the Yen surged higher. This only makes sense if you believe that QE 2.0 is right around the corner.