Tom Luongo: Why the Euro-Yen Cross Is the Carry Trade’s Tell

Recorded on August 4, 2026 at NRS Studios This NRS World clip from Tom Luongo’s conversation with host Andy Millette focuses on the mechanics behind the yen carry trade, the euro-yen cross, and the global capital flows connecting Japan, Europe, the United States, and major central banks. Luongo explains why investors borrow in low-rate currencies, how small yield spreads become significant when leverage is added, and why currency movements can force carry trades to unwind. Luongo also lays out his thesis that European institutions and offshore financial centers are major beneficiaries of yen-funded leverage. He discusses the Bank of Japan’s rate…