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ProShares Short Euro ETF (EUFX)

- NYSEARCA
  • Oct. 17, 2014, 5:38 AM
    • The ECB will start buying asset-backed securities and covered bonds "within the next few days" as part of its new program, Executive Board member Benoit Coeure has said.
    • "The objective (is) to steer the balance sheet toward higher levels and improve transmission to the real economy," Coeure said, speaking at a conference in Riga in Latvia.
    • He also called for reforms to help boost the eurozone economy. "Talking vaguely about structural reforms, but not doing them, is the worst of all worlds," Coeure said.
    • As you'd expect, Deutsche Bank President Jens Weidmann has reiterated his opposition to ABS purchases and said that they are problematic, particularly if it means a transfer of risk from banks to the ECB. Weidmann is in Riga as well.
    • Meanwhile, ECB governing-council member Ewald Nowotny has said that the bank may have to cut its 2015 eurozone GDP forecast from 1.6%.
    • The euro is +0.05% at $1.2816, while Italian 10-year yields are -4 bps at 2.51%, although they're still sharply higher for the week. German 10-year Bunds are +3 bps at 0.85% after touching fresh record lows this week, while France is +4 bps at 1.29% and Spain is -3 bps at 2.18%.
    • ETFs: FXE, EUO, ERO, EU, DRR, EUFX, ULE, URR
    | 3 Comments
  • Oct. 14, 2014, 5:21 AM
    • The German ZEW survey of investor confidence has unexpectedly dropped into negative territory for the first time in almost two years, tumbling to -3.6 in October from 6.9 in September and missing expectations of 1.
    • The current situation print has slumped to 3.2 from 25.4, falling short of consensus of 18.
    • Sentiment for the eurozone plunged to 4.1 from 14.2 and missed forecasts of 7.1.
    • "Geopolitical tensions and the weak economic development in some parts of the Eurozone, which is falling short of previous expectations, are a source of persistent uncertainty," says ZEW President Professor Clemens Fuest. "These factors are tarnishing growth expectations in Germany. Disappointing figures concerning incoming orders, industrial production, and foreign trade have likely contributed to the growing pessimism among financial market experts." (PR)
    • The DAX is -0.5% and the euro is -0.8% at $1.2653.
    • European ETFs: FXE, VGK, EUO, FEZ, ERO, IEV, HEDJ, EU, EPV, EZU, DRR, FEU, FEP, EUFX, UPV, ULE, ADRU, URR, FEEU, EURL, EURZ, DBEU, IEUR, FIEU, ESTX, HEZU
    • German ETFs: EWG, EWGS, DBGR, BUNL, DXGE, GERJ, FGM, GGOV, BUNT, QDEU, HEWG
    | 2 Comments
  • Oct. 7, 2014, 8:39 AM
    • It's fashionable of late to be bearish on the euro (NYSEARCA:FXE), currently residing at about a two-year low, but the call from Germany's biggest bank - that the common currency will buy just $0.95 by 2017 - is the most aggressive yet.
    • Cited by Deutsche's George Saravelos are huge European trade surpluses - typically bullish for a currency, but Saravelos argues the imbalances will be driven by barely visible economic growth, and shrinking investment returns forcing massive capital outflows from the EU.
    • "We expect Europe's huge excess savings combined with aggressive ECB easing to lead to some of the largest capital outflows in the history of financial markets ... "At around $400B each year, Europe's current account surplus is bigger than China's in the 2000s. If sustained, it would be the largest surplus ever generated in the history of global financial markets. This matters."
    • "Europe will become the 21st century's largest capital exporter. The next few years will mark the beginning of very large European purchases of foreign assets."
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Oct. 4, 2014, 4:43 PM
    • The ECB's attempts to weaken the euro and interfere with the euro/dollar exchange rate are "shocking," former ECB chief economist tells Focus magazine.
    • "The ECB is not demonstrating leadership, but is bowing to the expectations of the financial markets and political pressure from France and Italy."
    • He also criticized the ECB's bond-buying program, saying it has "nothing to do with monetary policy," and is forcing the ECB to take unpredictable risks.
    • Stark says the ABS purchases could lead to substantial redistribution among member stats, a mandate never given to the ECB.
    • ETFs: FXE, UUP, EUO, UDN, ERO, DRR, FORX, UUPT, UDNT, EUFX, ULE, USDU, URR
    | 8 Comments
  • Oct. 4, 2014, 4:30 PM
    • Bill Gross, set to start working for Janus (NYSE:JNS) on Monday, tells Barron's there will be a “bear markets for all assets” if the Fed raises its short-term rate to 4% in the next few years.
    • The Fed should target a rate of 2%, not 3.75-4%, to keep the economy in equilibrium, he says. Its current model fails to reflect structural changes in the economy.
    • Gross expects his fund to hold a "decent percentage" of short-term high-yield paper (10-25%), yielding 3-4%. "Both Janus and I like one-to-three-year high-yield paper issued by companies such as Ally Financial (NYSE:ALLY) and HCA Holdings (NYSE:HCA)."
    • Gross also likes Mexico (ETFs: EWW, UMX, SMK, DBMX, QMEX), and says he may take "mild short positions" in the euro (FXY, YCS, JYN, YCL)  and yen (FXE, EUO, ERO, DRR, EUFX, ULE, URR).
    • Janus may develop an ETF to track Gross's fund (MUTF:JUCTX).
    | 12 Comments
  • Oct. 3, 2014, 7:46 AM
    • France's Christian Noyer joined Germany's Jens Weidmann and Austria's Ewald Nowotny in dissenting from the Mario Draghi's plan to buy ABS, reports Bloomberg.
    • While the German and Austrian central bankers dissented over concern about the ECB's balance sheet risk, France's Noyer disapproved of the design of the program as national central banks will be excluded from its implementation - the ECB will use outside brokers to buy ABS, and the French central bank has a long track record assessing the quality of this sort of paper.
    • Previously: Draghi details asset purchase plan
    • The euro (NYSEARCA:FXE) is lower by 0.4% to $1.2613.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Oct. 2, 2014, 11:00 AM
    • The ECB will being buying covered bonds beginning in the middle of the month and ABS at some point this quarter, said Mario Draghi in his post-rate decision press conference (the ECB left policy unchanged).
    • The purchases, says Draghi, will last for at least two years and have a "sizable" impact on the ECB's balance sheet.
    • "This program is orientated to boost lending to SMEs (small and medium-sized enterprises)," said Draghi, adding that those assets targeted will be "simple and transparent."
    • Traders sold euros on the news, but have since bought them back and the currency is flat vs. the dollar on the session at $1.2654. European shares resume sliding, the Stoxx 50's (FEZ -1.8%) decline led by a 3.7% dive in Italy.
    • European equity ETFs: VGK, FEZ, IEV, HEDJ, EPV, EZU, FEU, FEP, UPV, ADRU, FEEU, EURL, DBEU, EURZ, IEUR, FIEU, HEZU, ESTX
    • Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | 1 Comment
  • Sep. 25, 2014, 6:42 AM
    • The ECB chief reiterates his pledge to "use additional unconventional instruments" to combat too-low inflation, with "unconventional" widely assumed to be code for QE.
    • Draghi's comments came after yesterday's PMI report showed the gauge slipping to its lowest level of the year (but still in expansion territory).
    • The euro slipped below $1.27 earlier in the session, and is currently -0.5% at $1.2717.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Sep. 18, 2014, 9:29 AM
    • What if you held at TLTRO and nobody came? The pressure rises on Mario Draghi to move forward with full-blown QE after European banks step up to borrow just €82.6B from the ECB at a fixed rate of 0.15% in the targeted longer-term refinancing operation. A Bloomberg survey had expected a €100B-€300B range of borrowing.
    • “This low figure is making the probability of fully-blown QE much higher,” says a fixed-income fund manager. “The target to raise the ECB balance-sheet size to roughly €3T will be attained, either through lending to banks or through direct investment into the markets.”
    • “This was clearly a failed operation,” says an analyst at Nordea Markets. “It puts pressure on them to also succeed with their covered-bond and ABS programs. Ultimately, even if you include those, it will be difficult for them to reach the balance-sheet target they have.”
    • The euro (NYSEARCA:FXE) is higher by 0.25% to $1.2890.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Sep. 4, 2014, 8:46 AM
    • The ECB cut its growth forecast for the EU for 2014 and 2015, says Mario Draghi at his post-meeting press conference, but raised its outlook for 2016. Inflation is seen at lower-than-expected levels in the coming months before increasing gradually in 2016.
    • The central bank, says Draghi, will start to purchase a broad portfolio of euro-denominated covered bonds and also begin to buy ABS, with further details coming in October. It sounds like the Germans are on board: "Should it become necessary, the Governing Council is unanimous in using additional measures."
    • The Stoxx 50 is now higher by 1.5% and the euro lower by 1% to $1.3015.
    • ETFs: FXE, VGK, EUO, EWG, FEZ, EWP, ERO, IEV, HEDJ, EPV, EZU, EWQ, DRR, FEU, FEP, UPV, EUFX, ULE, DBGR, ADRU, DXGE, FEEU, URR, EURL, FGM, EURZ, DBEU, QDEU, IEUR, FIEU, HEWG, QESP
    • Previously: Euro tumbles, stocks gain as ECB cuts rates
    | 10 Comments
  • Sep. 4, 2014, 7:56 AM
    | Comment!
  • Sep. 4, 2014, 5:07 AM
    • All eyes are on the ECB's policy meeting today, which will decide whether an overvalued euro and tensions with Russia will lead to further stimulus measures.
    • Although most economists expect the ECB to keep interest rates on hold and refrain from large-scale QE at least for today, many banks predict that Mario Draghi may commit to buying ABSs.
    • Draghi previously announced at Jackson hole that the ECB's Governing Council will "use all the available instruments" to deliver price stability over the medium term.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Sep. 3, 2014, 7:46 AM
    • While most expect some sort of rate cut or maybe even a full-blown QE announcement from the ECB at their policy meeting tomorrow, Goldman takes a variant view and expects the central bank to do nothing despite recent weak economic readings.
    • “Unless there is a significant further shock to the euro-area economy, our economists expect the ECB to remain broadly on hold until the December meeting ... Moreover they continue to see the hurdle to implementation of sovereign QE as high, owing largely to the well-known institutional and political constraints in the euro area.”
    • The rate decision is due tomorrow at 7:45 ET. The euro has been heading south in recent weeks and - should Goldman's call prove correct - a sharp bounceback rally could be in order.
    • Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | Comment!
  • Sep. 1, 2014, 7:05 AM
    • The Markit Eurozone Manufacturing PMI fell to 50.7 in August vs. 51.8 in July and against a preliminary estimate of 50.8. Looking at some individual countries, the PMI slipped to 51.4 from 52 in Germany - the lowest level in about a year; Spain continues growth at 52.8 (down from 53.9); Italy falls into contraction, at 49.8 from 51.9 in August.
    • "The slowdown in industry is likely to add further fuel to the fire for analysts expecting additional monetary or fiscal stimulus to be implemented," says Markit's Rob Dobson.
    • The euro is flat on the session at $1.31.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | 6 Comments
  • Sep. 1, 2014, 5:13 AM
    • The euro hit a new one-year low this morning, falling as far as $1.3119 against the dollar, as worries of escalating violence in Ukraine kept the currency on the defensive ahead of the ECB policy meeting later this week.
    • The ruble also tumbled to a fresh low, as the dollar rose by 0.7% to 37.33 against the ruble in early trade. The plunge follows the European Commission President Jose Manuel Barroso's warning over the weekend that the situation in Ukraine was approaching "a point of no return."
    • Euro Stoxx 50 -0.2%; DAX -0.4%; FTSE 100 -0.3%; CAC 40 -0.5%.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | 1 Comment
  • Aug. 31, 2014, 9:56 AM
    • Stressing the need for additional measures to counter deflation, French PM Manuel Valls has announced that the ECB must take further action against the overvalued euro.
    • The announcement comes on the heels of the euro zone's inflation data for August, which displayed consumer prices rising just 0.3% Y/Y (well below the ECB's target of just below 2%).
    • Along with hints from Mario Draghi, the new figures are also boosting expectations that the central bank will soon announce further stimulus measures and will likely trigger lively discussion at the ECB's Sept. 4 policy meeting this week.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | 3 Comments
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EUFX Description
ProShares Short Euro seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the U.S. dollar price of the euro.
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