The ETFS Long JPY Short EUR currency ETC has rallied by 2.1 per cent, bringing its year-to-date gains to 21 per cent, the highest on ETF Securities’ currency ETC platform.

Despite high debt levels and being one of the sell-side’s biggest consensus short recommendations earlier in 2010, the Japanese Yen has been one of the world’s best performing currencies, maintaining its role as a safe-haven during periods of risk aversion.

With the Euro feeling the brunt of European sovereign risk, the combination of long Yen short Euro positions as tracked by the fund has made this cross the most profitable on the ETFS currency ETC platform.

ETFS Short EUR Long USD has risen by 0.8 per cent to take YTD gains to nearly 18 per cent, second only to ETFS Long JPY Short EUR. The Euro reached the lowest level in over four years last week, with Spanish savings banks’ solvency issues, their potential impact on Spain’s sovereign rating and potential knock-on effect on other European banks keeping already nervous investors on edge. In addition, although the ECB kept rates on hold in a widely anticipated move, the ECB’s credibility has been damaged by its poor communication to the market, most recently it’s u-turn on bond buying policy last week.

ETFS Long CHF Short EUR is up 1.8 per cent as risk aversion drives investors’ into perceived safe havens. It was the second best performing currency ETC on ETF Securities’ currency ETC platform last week, bringing gains this year to seven per cent.

Despite the Swiss National Bank’s attempts to halt “excessive” appreciation of the Swiss Franc against the Euro, investors are looking once again at the Swiss Franc as a buffer against further Euro losses. At the onset of the financial crisis, investors fled the Swiss Franc, believing that the small open economy would fare poorly in a global economic slowdown. However, with its Eurozone neighbours now in an increasingly parlous position, investors have reaffirmed the long-held status of the Swiss Franc as a safe-haven currency.

Trading volumes in currency ETCs have jumped 85 per cent on flight-to-safety flows. ETFS Short EUR Long USD saw the largest turnover, accounting for 64 per cent of trading volume.