Euronext and EUROYEN
While the Tokyo Futures Exchange trades EUROYEN futures, Euronext in Europe also trades EUROYEN futures contracts, the Chicago Mercantile Exchange (CME) trades futures contracts so anyone can track EUROYEN from market to market and gauge euro/Japanese yen prices and direction. The preferred method to trade Japanese yen/U.S. dollar is to measure the spread between EUROYEN and Eurodollar futures because both have the same day counts. EUROYEN is priced in yen and represents deposits in offshore markets while Eurodollars represents U.S. dollar deposits in Europe. Spreads will determine direction as no better gauge exists as an early-warning sign to measure interest rates between these two pair arrangements. What is measured is ...
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