- The European Central Bank's monetary easing earlier this month has spelled trouble for the euro, and analysts say a sentiment shift has attributed further weakness. After hitting a 2-1/2 year high hit in early June, the euro has declined over 3%, due in part to the ECB's negative interest rates, and cut to its main lending rate.
- Carry trades, which borrow money in a currency that is backed by a low interest rate to fund investments in higher-yielding assets, have also increased using the euro.
- Both the ECB's monetary easing and carry trades have been main factors in causing a declining euro. Data released last week shows the net short position for the euro/dollar reaching its highest level since late May 2013.
- ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR