Inside the Markets
E
EUR/JPY
Description
EUR/JPY is a widely traded cross pair that reflects the relative economic outlook of the eurozone versus Japan. It is popular among carry traders due to the interest rate differential and serves as a barometer for European risk sentiment.
Key risks
ecb-boj-divergence
This risk may negatively affect the instrument’s performance under certain market conditions.
eurozone-risk
This risk may negatively affect the instrument’s performance under certain market conditions.
carry-unwind
This risk may negatively affect the instrument’s performance under certain market conditions.
The list of risks is not exhaustive and highlights the most material structural and market-related factors.
Portfolio role & behavior
Economic role
carrydiversification
Behavior
risk-sensitivecarry-trade
The information provided is for analytical and informational purposes only and does not constitute investment advice.
Any decisions are made independently by the user and at their own risk.
For details, see legal terms.