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CurrencyShares Euro Trust ETF (FXE)

  • Mar. 7, 2012, 3:36 PM
    The ECB is not expected to cut its benchmark rate from 1% at its policy meeting tomorrow. Further, President Draghi may signal the bank has done enough lifting, and no further special operations are in store. Near-term liquidity issues may have been addressed, but the still-weak EU economy may force Mr. Draghi into more action before long.
  • Mar. 7, 2012, 11:09 AM
    Bloomberg calculations show Greece with a 58% participation rate for its PSI so far. Key levels to breach: 66% in order for any sort of debt swap (and subsequent bailout) to go through, 75% is the government's goal, 95% the level at which CACs may not have to be activated.
  • Mar. 6, 2012, 1:35 PM
    France throws its support behind Luxembourg's Yves Mersch for a seat on the ECB's executive board, say sources, switching from backing Spain's Antonio Sainz de Vicuna. The move could tilt the balance towards the hawks at a time when they look with growing concern upon the wave of money unleashed over Europe.
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  • Mar. 6, 2012, 12:43 PM
    The Bundesbank looks on in worry as the ECB's easy money policies have spurred not just inflation (2.7%), but a real estate boom in perennially sluggish Germany. "The housing market is being swept clean," says Pimco's Andrew Bosomworth, as low real rates and easy loans put Germany where Spain and Ireland were 10 years ago.
  • Mar. 6, 2012, 10:25 AM
    The ECB balance sheet gives Apple's chart a run for the money, passing €3T for the first time and bringing that bank's assets as a percent of GDP to 1st place in the race with the Fed, BOJ, and BOE to see which can create the most currency. The euro (FXE) somehow remains higher (1.3%) YTD vs. the dollar.
  • Mar. 6, 2012, 8:33 AM
    Eurozone Q4 exports -0.4% Q/Q, stripping 0.2 percentage point from GDP, imports -1.2%. Household spending, government expenditure and business investment also fall. The GDP breakdown is worrying "as it shows widespread weakness," says economist Howard Archer. The EC's Olli Rehn predicts "a turning of the tide."
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  • Mar. 6, 2012, 7:12 AM
    Today's ECB refinancing operation (7-day maturity as opposed to the 3-year LTROs from December and February) has a take-up of just €17.5B. It's the lowest amount ever - suggesting with all the 3-year cash floating about, EU banks have no desire for short-term money.
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  • Mar. 5, 2012, 12:36 PM
    The EC calls Spain's declaration it will miss its 2012 budget target a "serious, grave" deviation, but the Spaniards are defiant and the rebellion has begun. "I cannot remember such a bold and open act of defiance by any state," says Ambrose Evans-Pritchard. "As for the 'Fiscal Compact,' it is rendered a dead letter by Spanish actions."
  • Mar. 4, 2012, 9:07 AM
    Greece is on course to default, as it looks set to fall short of the 95% agreement it needs from private creditors to secure its bond swap, The Daily Telegraph reports. Athens is ready to use collective action clauses (CAC) to impose the deal if it receives 66% approval, which is likely to prompt ratings agencies and the ISDA to declare default.
  • Mar. 2, 2012, 11:53 AM
    European shares close mixed in quiet trade following today's summit of EU leaders. Stoxx 50 -0.1%, Germany -0.4%, France flat, Italy +0.5%, Spain +0.1%, U.K. -0.4%. The euro continues to slide, -0.9% to $1.3194, and off more than 2% from midweek - just about the time folks were getting bullish on the currency again. Go figure.
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  • Mar. 2, 2012, 7:51 AM
    The official statement released as the EU summit breaks up contains the usual pablum "welcoming the progress" made on the Greek situation. Of most interest: "Euro area Heads of State ... recall their determination to do whatever is necessary ... and their readiness to act accordingly." For 2 years, many have questioned the commitment to EMU. Can anyone do so now?
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  • Mar. 2, 2012, 7:01 AM
    German retail sales unexpectedly slide 1.6% in January (+0.1% previous) against expectations for a gain of 0.5%. Sales rose 1.6% Y/Y. The euro -0.6% to $1.3235, with today's decline beginning right around the time of weak print.
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  • Feb. 29, 2012, 5:37 PM
    With the January air thick with forecasts of the euro dropping to $1.15 or even parity, the currency took flight, rising 6% in 6 weeks and squashing the shorts. Now - on the day of the continent-saving LTRO - from the FT:  "ECB loan boost heartens euro bulls," coming to print just about the time the currency reverses and dives 1%. Market cycles never get old.
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  • Feb. 29, 2012, 10:17 AM
    The euro goes into a tailspin on the release of the Bernanke testimony, diving about 50 pips and now down 0.4% on the day at $1.3403. It's a curious move given the lack of news in the Chairman's report, and even more curious considering the ECB conjuring up €529.5B earlier had little effect on the currency.
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  • Feb. 29, 2012, 9:30 AM
    Thought to have been mothballed after 2 weeks of no action, the SMP - the ECB's emergency sovereign bond purchase program - may be back. Bloomberg's Linda Yueh reports the central bank is hoovering up Portuguese paper as the 10-year yield blows out today.
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  • Feb. 29, 2012, 8:27 AM
    "Catastrophe has been avoided," says Citi chief economist (and former central banker) Willem Buiter of the ECB's liquidity gusher. Buiter expects "other episodes of near-panic and paralysis in the markets" to call on the ECB again as more EU sovereigns restructure debt and more holes are discovered in bank balance sheets. (video)
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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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