Peter Brandt's firm holds largest EUR/JPY short position amid Yen gains

Trader Peter Brandt stated that a EUR/JPY short is now his firm’s largest futures and currency position, with the pair trading at 175.65 in futures, down from an April high near 187.5. Despite the ECB paying 2.5% on deposits versus the BOJ's 1.25%, the Yen is gaining, partly due to US Treasury intervention on July 31, which helped lift the yen to 157.57 per dollar from a 163.73 low. Japan's core inflation reached 2.1% in September, surpassing the BOJ's 2% target, and overnight swaps imply an 80% chance of a December BOJ hike, while the ECB is set to decide on October 29 and the BOJ on October 30.