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CurrencyShares Euro Trust ETF (FXE)

- NYSEARCA
  • Oct. 22, 2014, 3:40 AM
    • The euro flirted with one-week lows today following reports that the ECB is considering buying corporate bonds on the secondary market, expanding upon its private-sector asset-buying program which it began on Monday.
    • The euro briefly fell to $1.2706 its lowest level since Thursday and last stood at $1.2715.
    • U.S. CPI data due at 8:30 p.m. ET is expected to reveal a flat annual core CPI inflation at 1.7% in September, but a softer reading could undermine the dollar by adding to speculation that the Fed could wait longer before raising rates.
    • ETFs: FXE, UUP, EUO, UDN, ERO, DRR, FORX, UUPT, UDNT, EUFX, ULE, USDU, URR
    | Comment!
  • Oct. 21, 2014, 3:54 PM
    • Speaking at the Robin Hood Investors Conference, David Tepper says he's short the euro (FXE -0.6%).
    • The hedge funder has been expecting the ECB to go full QE at some point, and is no doubt pleased at this morning's floating of the idea of the central bank adding secondary market purchases of corporate bonds to its just-in-place program of buying ABS.
    • ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
    | 2 Comments
  • Oct. 21, 2014, 8:01 AM
    • Pushing Europe to a sizable rally and sending the euro lower, Reuters says the ECB could decide as soon as this year to begin buying corporate bonds on the secondary market. The move would be an expansion of the ABS buying program launched this week.
    • "The pressure in this direction is high," says Reuters' source.
    • The Stoxx 50 (NYSEARCA:FEZ) is up 1.1% and the euro (NYSEARCA:FXE) lower by about 100 pips since the news, now down 0.3% at $1.2765.
    • Board Europe 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
    | 15 Comments
  • 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. 15, 2014, 11:59 AM
    • Markets and bond yields are falling everywhere, but it's the greenback (UUP -0.8%) which is taking the brunt of sales in foreign exchange. The euro (FXE +1%), yen (FXY +0.9%), swissie (FXF +0.9%) are all sharply higher, with cable (FXB +0.2%) advancing moderately. The loonie (FXC +0.1%) is up slightly vs. the dollar.
    • Dollar ETFs: UUP, UDN, FORX, UUPT, UDNT, USDU
    • Gold (GLD +0.9%) is up to $1,243 per ounce, about its highest price since Labor Day.
    | 4 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. 6, 2014, 3:49 PM
    | 2 Comments
  • 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. 30, 2014, 8:37 AM
    • Consumer prices in September are up just 0.3% from a year ago, down from 0.4% a  month previous, putting the inflation rate below 1% for twelve straight months. The ECB's target inflation rate is 2% and Mario Draghi has threatened to unleash more stimulus, perhaps QE, if inflation doesn't behave and go higher.
    • The euro sets more multi-year lows, slipping 0.75% to $1.2594.
    • FXE -0.75% premarket
    • The strong dollar is a good enough excuse to continue selling gold, which is off 0.9% to $1,207 per ounce, roughly the low point of the year.
    • GLD -0.8% premarket
    | 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. 24, 2014, 7:34 AM
    • The Ifo's Business Climate Index falls to 104.7, less than projected and the lowest read since April of last year. Expectations hit their lowest level since December 2012, according to Ifo chief Hans-Werner Sinn.
    • "The German economy is no longer running smoothly," says the Ifo
    • The weak print seems to have boosted expectations for more from the ECB, as the euro (NYSEARCA:FXEslumps 0.2% and European stocks (NYSEARCA:FEZgain 0.5%. Germany's DAX (NYSEARCA:EWG) edges up 0.1%.
    | 1 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!
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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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