FYI: Seeking an informational edge on where currencies from the euro to the yen to the Mexican peso are headed? Take a look at flows into equity exchange-traded funds.
Strategists at Deutsche Bank AG have found that a one standard-deviation shock to ETF inflows -- passive money moving into stocks at an above-average rate -- is associated with a five basis point appreciation for riskier currencies over the following day; a two basis point appreciation for the euro; and a three basis point depreciation for the yen, all versus the dollar.
Regards,
Ted
http://www.fa-mag.com/news/etfs-as-predictors-of-currency-returns-32802.html?print
