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CurrencyShares Euro Trust ETF (FXE)

  • Apr. 13, 2012, 10:09 AM
    Europe touches new session lows about an hour and a half before its close for the week. Stoxx 50 -2.3%, Spain (earlier) -3.3%, Italy -2.8%, Germany -2.1%. Banco Santander (STD -3.3%), SocGen (SCGLY.PK -5.4%, Deutsche Bank (DB -3.8%), Financial ETF: EUFN -2.3%. Euro -0.7% to $1.3099.
    | Apr. 13, 2012, 10:09 AM | 5 Comments
  • Apr. 12, 2012, 4:53 PM
    "This is turning into a disaster for the EU periphery," says RBS' Andrew Roberts, who notes Spanish and Italian banks are "deeply underwater" on their LTRO-enabled purchases of sovereign debt. "What the LTRO has done is concentrate systemic risk even further," argues Guy Mandy from Nomura. "If everything goes wrong, it could go wrong in a hurry."
    | Apr. 12, 2012, 4:53 PM | 4 Comments
  • Apr. 12, 2012, 7:12 AM
    Some colorful comments from Polish central bank chief Marek Belka hit the wire. He says a EMU collapse would be like a volcano eruption at a neighbor's. He believes EMU will survive, but maybe in an altered form.
    | Apr. 12, 2012, 7:12 AM | Comment!
  • Apr. 12, 2012, 5:40 AM
    Eurozone industrial production +0.5% M/M vs. flat in January and -0.2% forecast, and -1.8% Y/Y vs. -1.7% forecast. (PR)
    | Apr. 12, 2012, 5:40 AM | Comment!
  • Apr. 11, 2012, 2:50 PM
    The SNB may be set to fry the Swiss franc bulls and take the euro/franc floor up to CHF 1.25 from 1.20, suggests Goldman's Jim O'Neill. He notes key Swiss politicians have said the cross should be around 1.35-1.40, and if markets don't relent, the central bank may have to act. FXF +2.3% YTD.
    | Apr. 11, 2012, 2:50 PM | 1 Comment
  • Apr. 11, 2012, 1:23 PM
    George Soros slams the Bundesbank for clinging to an outdated doctrine, blaming a belief in sound money at least partly for the deteriorating eurozone situation. The crisis is far from over, he says, arguing the fiscal compact "cannot possibly work," and is "potentially catastrophic."
    | Apr. 11, 2012, 1:23 PM | 3 Comments
  • Apr. 11, 2012, 12:37 PM
    "Europe 2012 is NOT Europe 2011," writes Macro Man, not discounting the economic difficulties of Spain, but arguing the LTRO has removed systemic risk from the equation. "Disillusionment with LTRO is misguided," says Genevieve Signoret. "It showed (the) ECB won't let (the) banking system collapse. Period. (It's) designed to contain crisis, not cure."
    | Apr. 11, 2012, 12:37 PM | 5 Comments
  • Apr. 11, 2012, 10:02 AM
    "What is the EU going to do," writes a Spanish professor, "Send in the army?" Calling German-imposed austerity on a crumbled economy a "recipe for disaster," he urges PM Rajoy to follow the lead of the U.K.'s Cameron and walk. The "smothering conformity of past years has been obliterated," says Ambrose Evans-Pritchard, noting the quick change in Spanish attitudes towards EMU.
    | Apr. 11, 2012, 10:02 AM | 3 Comments
  • Apr. 10, 2012, 4:46 PM
    Re: Europe. This isn't Jim Rickards' first rodeo. He lays out the coming sequence of events: "Spain yields spike, investors puke, Soros buys 'em at 7%, Fed eases, IMF bails out Spain via SDR debt, bonds rally, rinse, repeat."
    | Apr. 10, 2012, 4:46 PM | 3 Comments
  • Apr. 10, 2012, 1:32 PM
    Spain has exposed the limits of the ECB's LTRO, writes John Plender, adding the program only reinforced a dynamic of weak EU banks propping up overstretched sovereign borrowers. Bank balance sheets are now in even worse shape as lenders pledged so much collateral as security for ECB loans. It's "back to make do and mend in the eurozone."
    | Apr. 10, 2012, 1:32 PM | 9 Comments
  • Apr. 10, 2012, 9:13 AM
    More from the SNB: Since the central bank imposed the 1.20 floor on the euro, its reserves have barely grown, suggesting its resolve has yet to be tested. "We have not been impressed by the recent ceiling management," says a currency strategist. If the SNB is truly "resolved," expect to be impressed soon. The cross remains slightly above the floor at CHF 1.2022.
    | Apr. 10, 2012, 9:13 AM | Comment!
  • Apr. 10, 2012, 7:17 AM
    SNB interim chief Thomas Jordan reiterates the bank's readiness to buy foreign exchange in unlimited quantities to support its CHF 1.20 floor against the euro. He also confirms the SNB was in the market Thursday as the euro briefly fell below 1.20 and says he can't exclude an offer underneath that level. Euro buying CHF 1.2028.
    | Apr. 10, 2012, 7:17 AM | Comment!
  • Apr. 10, 2012, 7:11 AM
    European investor confidence drops to -14.7 from -8.2 in March, according to Sentix. Its gauge of expectations declines to -9.3 from -2.3. It's the first tumble for the survey in 4 months as a bit of reality intrudes on the sugar high from the ECB's LTRO.
    | Apr. 10, 2012, 7:11 AM | Comment!
  • Apr. 9, 2012, 12:34 PM
    The euro/Swiss franc cross breached the SNB's 1.20 floor for the 2nd time in a week last night, hitting CHF 1.1996 (currently back to 1.2014). Liquidity was thin as much of Europe remained on Easter holiday, but one wonders if the SNB is set to make a statement and burn the euro shorts as it gets back to full staff tomorrow.
    | Apr. 9, 2012, 12:34 PM | Comment!
  • Apr. 9, 2012, 10:54 AM
    Portuguese bank dependence on ECB borrowing rose to a record €56.32B in March from €47.55B previously. Facilitating the jump were easier collateral rules which allowed lenders to present things like residential mortgages and unsecured consumer loans as security for freshly minted euros.
    | Apr. 9, 2012, 10:54 AM | 2 Comments
  • Apr. 6, 2012, 9:13 AM
    The interesting action is again in the euro/Swiss franc cross, where traders may be trying to take advantage of a thin market to push it through its 1.20 floor (as they did briefly yesterday, harkening a quick reaction from the SNB). The cross currently sits at CHF 1.2008.
    | Apr. 6, 2012, 9:13 AM | 6 Comments
FXE Description
CurrencyShares Euro Trust is designed to track the price of the euro net of Trust expenses, which are expected to be paid from interest earned on the deposited euros.
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