Invesco CurrencyShares Euro Currency Trust [FXE] Stock Forecast

Many economists anticipate that the ECB is nearing the conclusion of its rate-hike cycle due to a slowdown in economic growth.

Markets are torn. Will the ECB hike this week or not?

There were some developments in July that are equally relevant in August. These developments include Q2 earnings release, cooling inflation, upbeat U.S. economic indicators, chances of an upbeat oil market and softer greenback.

Marc Chandler and James Foord discuss international markets, economies and currencies. Has the Fed conquered inflation?

The euro has experienced a bearish trend against the U.S. dollar since 2008, reaching a two-decade low in 2022 due to rising U.S. interest rates and the war in Ukraine. The euro has recovered since its 2022 lows, supported by a slowdown in U.S. interest rate hikes, warm European winter conditions, and a potential BRICS currency. Warming Chinese-European relations could weaken the U.S. position and boost the euro's value against the dollar, with the critical level for the currency pair being the January 2021 high of $1.2349.

The EUR has outperformed the USD in recent months amid increased fund inflows and a turnaround in investor sentiment. Key to further EUR/USD upside is the diverging monetary policy runways amid the banking stress and growth turnaround in the Euro area.

The European Central Bank's job is not yet finished. Far from it. Our view is that the ECB will phase out reinvestments of its Asset Purchase Programme portfolio throughout 2023 by gradually removing the reinvestment cap.

The FXE provides exposure to the Euro through a brokerage account. The Euro had been a consensus short in 2022, as the Eurozone economy and ECB monetary policies diverged from the US economy and the Fed.

British pound slides more than 3% as caution urged.

The euro currency and related exchange traded funds are taking a beating as the ongoing energy crisis and heightened geopolitical risks weigh on the Eurozone's economic outlook. The Invesco CurrencyShares Euro Currency Trust (FXE) has declined 11.9% year-to-date, with the euro currency now trading near parity against the U.S. dollar at $1.0044.

Invesco CurrencyShares Euro Currency Trust is a US stock and trading under the symbol FXE

Invesco CurrencyShares Euro Currency Trust stock price is $97.835 today.

Yes, Invesco CurrencyShares Euro Currency Trust is a publicly traded company.