Benzinga  Nov 23  Comment 
Todd Gordon suggested on CNBC's Trading Nation that traders should consider an options trading strategy in Guggenheim CurrencyShares Euro Trust (NYSE: FXE). He thinks that Guggenheim CurrencyShares Euro Trust is going to continue to trade...
Benzinga  Oct 21  Comment 
On CNBC's Trading Nation, Todd Gordon of TradingAnalysis.com recommended to the audience a bearish options strategy in Guggenheim CurrencyShares Euro Trust (NYSE: FXE). He thinks that the U.S. dollar is continuing to strengthen on expectations...
Market Intelligence Center  Oct 1  Comment 
Wednesday's trading in Euro Trust (FXE) gives options traders an opportunity for a 5.26% return. By selling the Jan. '16 $109.00 call and buying the Jan. '17 call at the $95.00 level for a net debit of $13.30, traders will book a profit as long as...
TheStreet.com  Sep 11  Comment 
NEW YORK (TheStreet) -- The , the symbol for the Currency Shares Euro Trust ETF is at a technical crossroads. It would be nice to know what the euro will be doing ahead of one's European vacation, but the charts show no clear indication yet. ...
Market Intelligence Center  Aug 19  Comment 
The option-trade picking algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center have selected a covered-call trade on Euro Trust (FXE) that includes 2.41% downside protection. Sell one contract of the Dec. '15 $108.00 call...
Market Intelligence Center  Aug 13  Comment 
The patented options-trade picking algorithms used by MarketIntelligenceCenter.com found a trading opportunity with Euro Trust (FXE) that should provide a 2.17% return in just 127 days. Sell one Dec. '15 call at the $109.00 level for each 100...
Market Intelligence Center  Aug 5  Comment 
The patented options-trade picking algorithms used by MarketIntelligenceCenter.com found a trading opportunity with Euro Trust (FXE) that should provide a 2.14% return in just 135 days. Sell one Dec. '15 call at the $106.00 level for each 100...
Market Intelligence Center  Jul 27  Comment 
Euro Trust (FXE) presents a trading opportunity that offers a 2.44% return in just 144 days. A covered call on Euro Trust at the $107.00 level expiring on Dec. '15 offers an assigned return rate of 2.44% or 6.19% annualized. This trade offers...
Market Intelligence Center  Jul 21  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artifical Intelligence Center found a trading opportunity with Euro Trust (FXE) that should provide a 2.54% return in just 150 days. Buy one Dec. '15 call at...


History of The Euro

(Relevant to truly understand the nature of the fund) In 1998, the European Central Bank in Frankfurt was organized by Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain in order to establish a common currency—the euro. In 2001, Greece joined as the twelfth country adopting the euro as its national currency. Unlike the U.S. Federal Reserve System, the Bank of Japan and other comparable central banks, the European Central Bank is a central authority that conducts monetary policy for an economic area consisting of many otherwise largely autonomous states.

At its inception on January 1, 1999, the euro was launched as an electronic currency used by banks, foreign exchange dealers and stock markets. In 2002, the euro became cash currency for approximately 300 million citizens of 12 European countries. On May 1, 2004, ten additional countries joined the European Union and, subject to meeting rigorous criteria established by the European Central Bank, are expected to adopt the euro as their national currency some time before 2010. These countries are Cyprus (South), the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

Although the European countries that have adopted the euro are members of the European Union, the United Kingdom, Denmark and Sweden are European Union members that have not adopted the euro as their national currency.

Reasons for Investing in The Euro

All forms of investment carry some degree of risk. Although the Shares have certain unique risks described in ‘‘Risk Factors,’’ generally these are the same risks as investing directly in euro. Moreover, investment in the Shares may help to balance a portfolio or protect against currency swings, thereby reducing overall risk. Investors may wish to invest in euro in order to take advantage of short-term tactical or long-term strategic opportunities. From a tactical perspective, an investor that believes that the U.S. dollar is weakening relative to the euro may choose to buy Shares in order to capitalize on the potential movement. An investor that believes that the euro is overvalued relative to the U.S. dollar may choose to sell Shares. Sales may also include short sales that are permitted under SEC and exchange regulations.

From a strategic standpoint, since currency movements can affect returns on cross-border investments and businesses, both individual investors and businesses may choose to hedge their currency hedging risk through the purchase or sale of euro. For example, in the case where a U.S. investor has a portfolio consisting of European equity and fixed income securities, the investor may decide to hedge the currency exposure that exists within the European portfolio by selling an appropriate amount of Shares. Again, such sales may include short sales in accordance with applicable SEC regulations. In doing this, the U.S. investor may be able to mitigate the impact that changes in exchange rates have on the returns associated with the European equity and fixed income components of the portfolio. Similarly, a business that has currency exposure because it manufactures or sells its products abroad is exposed to exchange rate risk. Buying or selling Shares in appropriate amounts can reduce the business’s exchange rate risk. More generally, investors that wish to diversify their investment portfolios with a wider range of non-correlative investments may desire to invest in foreign currencies. Non-correlative asset classes, such as foreign currencies, are often used to enhance investment portfolios by making them more consistent and less volatile. Less volatility means lower risk and closer proximity to an expected return.

Cost-efficient Participation in the Euro Market

The Shares are intended to offer investors a new and different opportunity to participate in the euro market through an investment in securities. Historically, the logistics and expense of investing in foreign exchange have been a barrier to entry for many investors. This offering is aimed at overcoming the barriers to entry. A prospective purchaser of Shares should not encounter any tasks or costs beyond those associated with purchasing another publicly-traded equity security. The Shares are intended to provide institutional and retail investors with a simple, cost-effective means of gaining investment benefits similar to those of holding euro. The Shares are an investment that is: Easily Accessible. Investors will be able to access the euro market through a traditional brokerage account. The Shares will be bought and sold on the NYSE like any other exchange-listed security, except that they will regularly be traded until 4:15 PM (New York time) instead of 4:00 PM (New York time). Cost-Effective. Investors and businesses wishing to buy or sell currencies in modest size have had to pay as much as a 3% commission to effectuate their transactions. Because Shares will be traded as securities, transaction costs will be substantially reduced.


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki