How to understand "flows"

[Nowler]

I have seen this from time to time, but I do not understand it.

Eg: "The pound continues to surge - in part helped by EUR/GBP flows "

What exactly are these "flows" and how does it work? What influences it?

Thanks

 

[Nowler]

When there is geopolitical risk, money seems to leave the USD and go into the JPY.
Is this flow the same thing?

 

[Nowler]

Now that the nuisance has been put in the naughty corner for a well earned timeout, can anyone shed some light on this?
Perhaps a link to materials I can read/watch to better understand the flow relationship between currencies?

 

[cantagril]

Now that the nuisance has been put in the naughty corner for a well earned timeout,

You mean, it's safe to go back in the water????

can anyone shed some light on this?
Perhaps a link to materials I can read/watch to better understand the flow relationship between currencies?

Capital Flows: Definition and Examples of Fund Movement

Capital flows entail the path that money travels through corporations, governments or other entities for the purpose of investment, trade or business production.

www.investopedia.com

Lipper Fund Performance

LSEG Lipper provides impartial fund performance data, including mutual, retirement and hedge funds, in a precise, granular fund classification system.

www.lipperusfundflows.com

 

[Nowler]

Well... based on his obsessive and unhinged behavior, my money is on him setting up a new account so he can get his fix until his timeout runs down. I would then double up on it turning into a permanent "shooo" not too long after he comes back. Nobody goes from bat-sh!t crazy, to a respectable member of society that quick, and without extensive intervention.

Thank you very much for the info mate!
I have read the Investopedia one, but I not the fund flow data services... though, now that I look at it, I feel someone might have suggested this to me before. I should save a document to my cloud with such stuff on it. I need to be more organised

Cheers

I do have a question though.
Why does money flow out of the USD and into the JPY during unexpected risk events?
Such as the unexpected tariffs dished out by Trump in recent times.
More specifically, why the JPY?

 

[cantagril]

Well... based on his obsessive and unhinged behavior, my money is on him setting up a new account so he can get his fix until his timeout runs down. I would then double up on it turning into a permanent "shooo" not too long after he comes back. Nobody goes from bat-sh!t crazy, to a respectable member of society that quick, and without extensive intervention.

Thank you very much for the info mate!
I have read the Investopedia one, but I not the fund flow data services... though, now that I look at it, I feel someone might have suggested this to me before. I should save a document to my cloud with such stuff on it. I need to be more organised

Cheers

I do have a question though.
Why does money flow out of the USD and into the JPY during unexpected risk events?
Such as the unexpected tariffs dished out by Trump in recent times.
More specifically, why the JPY?

You're probably right about our unhinged friend but "out of sight, out of (his) mind" - so that works for me.

As to your question - I think you'll find that a simple search using your question as string will give you many many hits. In the meantime though:

Why Is the Japanese Yen a Safe-Haven Currency?

During times of uncertainty, such as the prelude to the Brexit vote, investors tend to gravitate toward the Japanese yen. This causes the yen to appreciate and has led to the common perception of the yen as a safe-haven currency.

www.financialsense.com

 

[Nowler]

Thanks mate.
I do generally search for these answers myself, but the beauty of a forum environment is that it's peer reviewed.
This is particularly useful when it comes to all the garbage online.
Though depending on the topic, I might just come straight here for the opinions of some of you.

Cheers

 

[timsk]

I do generally search for these answers myself, but the beauty of a forum environment is that it's peer reviewed. . .

Hi Nowler,
Part of the problem in addressing the question you pose about 'flow' is that it embraces - or at least kisses - a number of other topics which are all connected. It's all a bit nebulous, hard to pin down and 'flow' means different things to different people. That said, perhaps that's just because I don't have a particularly solid grasp of the topic myself! Be that as it may, you might like to tag on some additional research which will help inform your understanding of 'flow' on a macro scale . . .
Risk on / risk off
Nothing really new in this, but it was much discussed a few years back and does provide insight into which markets fall into which category and why. If you struggle to unearth anything really useful, I suggest you PM counter_violent as he's done a fair amount of work on this.
Liquidity
There are a couple of excellent articles here on T2W by Peter Davies (aka DionysusToast) which are well worth reading on this topic:
Understanding Liquidity and Market Pullbacks
Trading with the Cumulative Delta ‘Indicator’
As I say, these aren't specifically about 'flow' as such but, nonetheless, should add a little spice to the recipe. Enjoy!
Tim.

 

[counter_violent]

Hi Nowler,
Part of the problem in addressing the question you pose about 'flow' is that it embraces - or at least kisses - a number of other topics which are all connected. It's all a bit nebulous and hard to pin down. That said, perhaps that's just because I don't have a particularly solid grasp of the topic myself! Be that as it may, you might like to tag on some additional research which will help you to inform your understanding of 'flow' on a macro scale . . .
Risk on / risk off
Nothing really new in this, but it was much discussed a few years back and does provide insight into which markets fall into which category and why. If you struggle to unearth anything really useful, I suggest you PM counter_violent as he's done a fair amount of work on this.
Liquidity
There are a couple of excellent articles here on T2W by Peter Davies (aka DionysusToast) which are well worth reading on this topic:
Understanding Liquidity and Market Pullbacks
Trading with the Cumulative Delta ‘Indicator’
As I say, these aren't specifically about 'flow' as such but, nonetheless, should add a little spice to the recipe. Enjoy!
Tim.

Here you go Nowler.

In Tim's opening post there is a RORO doc download. That should be a good starting point for your investigation into flows.

RORO - The New Market Paradigm?

Risk On - Risk Off (RORO) is a new way off looking at different asset classes. This video lasting 6 or 7 minutes outlines the basic principles and the report referred to by the interviewee is this one: Clearly, it has implications for large institutions and investment managers, but could it...

www.trade2win.com

 

[timsk]

In Tim's opening post . . .

I completely forgot about that thread (that I started!)

 

[Nowler]

Thank you very much gentlemen!
I had a quick scan over it and looks very useful!

I'll allocate some time to watch/read through it.