Relative Economic Strength vs. Capital Flows Forecasting

[FrankCFA]

4.6.9. Approaches to Forecasting Exchange Rates
What’s the main difference between Relative Economic Strength Approach and Capital Flows Forecasting Approach?
I read the curriculum twice but still find it’s pretty similiar.

Can any smarter guy advise? Thank you.

 

[FrankCFA]

The capital flows forecasting approach focuses on expected capital flows, particularly long-term flows such as equity investment and foreign direct investment (FDI). - Curriculum
Why curriculum only mention equity investment instead of treasury? For 2014 2H and 2015 1Q, isn’t cash flow going to buy US treasury making USD strenghening? (One of major reason)

 

[June06]

Capital flows forecasting more focusing on FDI?