Hello. My name is Simon Derrick. I'm Chief Currency Strategist at BNY Mellon and this is CantosCharts.

Over the course of the last day I've been looking at some of the flows that have driven the euro to extraordinary highs over the course of the last 12 months despite the fact that we've seen a series of currency crises.

Yesterday we looked at the recycling of reserves out of China and out of other emerging nations and into the euro as the prime alternative to the dollar in the face of cheap dollars.

Here was the chart we were looking at at the end of yesterday with the steady and quite remarkable flows that have taken holdings beyond where they were even in the summer of 2007 despite a rolling series of crises. But what's interesting is that these flows into the euro stand in marked contrast to what we are seeing and a loss of the underlying asset markets.

These are the flows over exactly the same period out of Greek debt. Anything with a maturity over one year, I should add.

It is a fairly simple and fairly stark story where from the summer of '07 just as the crisis starts, the first outflows from Greek debt emerging and then, during the first half of last year, this remarkable sell-off.

By now, of course, the vast majority of people who can sell Greek debt have sold out of the Greek debt, so one of the things that is very noticeable is actually we're starting to see something of a stabilisation in the flows.

But even so, over the course of the last few weeks, as it has become apparent, the pressure is on for Greece to do something extra to get any additional aid and as has become apparent that Germany is particularly keen on Greece actually having a restructuring of its debt, fresh outflows have started to emerge.

But where this loss of confidence really shows up is not in the Greek bond market flows but in Greek equity flows as people try to avoid the organisations within Greece that have themselves exposure to Greek debt.

It becomes very clear here that that level of confidence is collapsing as the Greek stock market moves towards multi-year lows and at present, despite the fact that people still like the euro as a currency, clearly, there is a very real loss of confidence in the local equity market.

Now a lot of people will highlight to you that Greece is a relatively small proportion of the eurozone economy and that's absolutely correct. But what is also true is that this loss of confidence is not simply isolated to Greece.

Here we have Portugal and here we have, in the spring of last year, the initial loss of confidence. But again we can see net sterling continuing throughout the course of this year despite the fact that the bailout has apparently been agreed.

The same story applies to one of the larger markets and a market that actually was downgraded only a week ago. I put it on watch for a downgrade only a week ago. Here is Italy and again, just look at the sheer pace of the outflows and the continuity of the outflows. This is not an isolated issue, but is a loss of faith in the periphery as a whole.

But of course, that money has to go somewhere and the safe haven of choice within Europe has been the German bond markets. Here we can see all the way from late 2009 onwards this quite remarkable and very steady pickup of buying of the bund as people look for any safe haven they possibly again and presumably, as the reserve managers who don't which to put their money in the margins, focus almost exclusively on the core Europe, whether it's additional purchases.

But even here something interesting has started to happen. Just over the course of the last week or so we've started to see for the first time really in a long while, modest outflows starting to take place. It's still too early to say whether this represents a significant change of trend, but if we are ever going to see something that breaks the faith that investors have had in the euro over the course of the last 12 months or so, then this almost certainly will be it. Something to be watched closely in the next few weeks.

My name is Simon Derrick. I'm Chief Currency Strategist at BNY Mellon and this has been CantosCharts.