Invesco CurrencyShares Euro Trust
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
FXE$102.77-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000950170-24-054974
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 30 previous paragraphs and 27 current paragraphs.
20 unchanged; 5 reworded; 2 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
The euro (EUR/USD) ended the second quarter of 2024 with a small loss. Price action was once again mostly driven by US Dollar moves. Sticky inflation in the US repeatedly pushed out Fed easing expectations, keeping treasury yields propped up. In comparison, the European Central Bank (ECB) began its easing cycle in June on expectations of weaker economic growth and hence lower inflation. Higher interest rates generally boost the country’s currency and vice versa.
Current report
The euro (EUR/USD) ended the second quarter of 2023 more or less flat after seesawing largely on US Dollar moves. However, the EUR did receive some support from the European Central Bank’s persistently hawkish rhetoric, given the later start of its rate hike cycle vs the Fed. The USD moved lower in April and June, helping the pair rally, as US banking sector turmoil fueled expectations for an imminent Fed pause, which didn’t happen until June on expectations for a significant cooling in US inflation. Instead, Fed’s stance turned more hawkish in May causing the USD to rally, hence weighing on the EUR/USD.
Removed paragraphs (5)
Previous report
action. The greenback declined significantly in January, boosting the pair, as expectations that the Fed will soon start to back down
Previous report
from its aggressive rate hikes grew. However, from February through early March the currency pair fell under pressure as the USD
Previous report
rebounded amid persistently high US inflation and strong labor data, which reversed bets for a dovish Fed. While this downturn wiped
Previous report
out most of January’s gains, the euro was able to recover significantly in the second half of March with the USD plunging again on
Previous report
returning speculation for a softer Fed stance amid heightened banking sector volatility.
Reworded paragraphs (5)
Previous wording
The Trust does not have any material cash requirements as of the end of the latest fiscal period. The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs. The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of March 31, 2024 was an annual nominal rate of 2.70%. The following chart provides the daily rate paid by the Depository since March 31, 2019:
Current wording
The Trust does not have any material cash requirements as of the end of the latest fiscal period. The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs. The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of June 30, 2024 was an annual nominal rate of 2.50%. The following chart provides the daily rate paid by the Depository since June 30, 2019:
Previous wording
During the three months ended March 31, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
Current wording
During the three and six months ended June 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
Previous wording
The euro (EUR/USD) posted a loss in the first quarter of 2024 though price action was largely driven by USD moves. The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts; higher rates generally provide support for the country’s currency. US economic resilience and heightened geopolitical tensions also boosted demand for the USD, which is typically seen as a safe haven. In comparison, the European Central Bank (“ECB”) was more dovish, looking to cut rates earlier than the Fed, and its economy was notably softer.
Current wording
The euro (EUR/USD) posted a loss in the first half of 2024 though price action was largely driven by US Dollar moves. The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation repeatedly pushed out expectations for US rate cuts. US economic resilience and heightened geopolitical tensions in the first quarter also boosted demand for the dollar, which is typically seen as a safe haven. In comparison, the European Central Bank (ECB) was more dovish given its noticeably weaker economy, officially kicking off its easing cycle in June.
Previous wording
The euro (EUR/USD) posted a small gain in the first quarter of 2023 with USD moves accounting for most of the price
Current wording
The euro (EUR/USD) posted a small gain in the first half of 2023 with dollar moves accounting for the bulk of the price action though the European Central Bank’s persistently hawkish rhetoric provided some support in the second quarter. The greenback swayed sharply between gains and losses through most of the period as expectations that the Fed would soon start to back down from its aggressive rate hikes grew, and then dimmed repeatedly as a result of the banking sector turmoil, US debt ceiling uncertainty, inflation prints and Fed comments. This sent the USD, and hence the pair, on a rollercoaster ride in the first half of 2023.
Previous wording
Additionally, the interest rate paid by the Depository has generally trended upward over the past year from sub-zero, to the current interest rate of 2.70%, as set forth in the FXE Rate Chart above. As long as the interest income, if any, exceeds the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
Current wording
Additionally, the interest rate paid by the Depository has generally trended upward over the past year, slightly offset by decline in the recent quarter, to the current interest rate of 2.50%, as set forth in the FXE Rate Chart above. As long as the interest income, if any, exceeds the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.