Peter Brandt's EUR/JPY Short Is His Firm's Largest Position as Yen Gains

On Oct. 23, trader Peter Brandt said on X that his firm’s largest futures and currency position was a short in EUR/JPY, the price of one euro in yen; a short is a bet the pair will fall. The pair had dropped from an April high near 187.5 to 175.65 in futures and has traded below a range floor near 180 since late September. The position faces European Central Bank and Bank of Japan decisions on Oct. 29 and Oct. 30. The ECB pays 2.5% on deposits versus 1.25% at the BOJ, while Japan’s September core inflation was 2.1%, above the BOJ’s 2% target, and overnight swaps, which track rate expectations, imply an 80% chance of a December BOJ hike.