Closing Short EUR/JPY Via A Put Spread

Crédit Agricole CIB is closing its short EUR/JPY put spread trade following an out-of-the-money expiry and a -2.0% loss. The strategy failed due to JPY weakness driven by energy-related terms of trade shocks.

Key Takeaways

• 1.The firm is closing a short EUR/JPY position established in December after it expired out of the money.
• 2.JPY underperformance is attributed to a negative terms of trade shock from higher energy prices linked to the US-Iran war.

Table of Contents

• Closing short EUR/JPY via a put spread
• Related publications
• Red Mount Analytics
• Global Markets Research contact details
• Certification
• Foreign exchange disclosure statement to clients of CACIB
• Additional recommendation obligations – available from analyst(s) upon request
• Valuation and methodology
• MiFID II contact details
• Disclaimer

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