46 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of March 31, 2024 was an annual nominal rate of 2.76%.
−Removed: The following chart provides the daily rate paid by the Depository since March 31, 2019:
+Added: The interest rate in effect as of June 30, 2024 was an annual nominal rate of 2.51%.
+Added: The following chart provides the daily rate paid by the Depository since June 30, 2019:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
11 unchanged sentences
Results of Operations
−Removed: 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.
+Added: 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
−Removed: 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.
−Removed: The Canadian Dollar (CAD/USD) was pressured in the first quarter of 2024, mainly by gains in the USD.
+Added: 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.
+Added: The Canadian Dollar (CAD/USD) continued lower in the second quarter of 2024.
+Added: The main driver for this was gains in the US dollar, with the Fed sticking to its more hawkish stance, causing further delays in rate cut expectations.
+Added: However, renewed weakness in oil prices in the second quarter of 2024 due to weakening macro sentiment, fading geopolitical risk premium, US crude inventory builds, and OPEC’s plans to gradually bring back barrels later this year, added further downward pressure.
+Added: The Canadian Dollar (CAD/USD) posted positive performance in the second quarter of 2023.
+Added: While the pair swung back and forth in the first two months of the quarter on dollar and commodity moves, the CAD began climbing in June supported by the hawkish repricing of the Bank of Canada’s (BoC) inflation fighting interest rate expectations while the US Fed paused.
+Added: Oil prices also recovered slightly following Saudi Arabia’s additional announced production cut and the extension of other OPEC+ member cuts until year end 2024.
+Added: This provided an additional boost, given Canada is a major crude oil exporter.
+Added: The Canadian Dollar (CAD/USD) was pressured in the first half of 2024, mainly by gains in the US dollar.
The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for rate cuts.
Higher rates generally provide support for the country’s currency.
−Removed: US economic resilience also boosted demand for the USD, pressuring the pair.
−Removed: While rising energy prices typically benefit the Canadian Dollar given the country is a major exporter of crude oil, the positive impact was outweighed by the mentioned USD gains.
−Removed: The Canadian Dollar (CAD/USD) was more or less flat in the first quarter of 2023.
−Removed: While the Canadian Dollar did gain a bit in the first half of the quarter, as the USD weakened further on expectations for a softer Fed stance, the pair fell sharply from mid-Feb to mid-Mar, with the USD rebounding on signs of continued strength in the US labor market and inflation.
−Removed: Struggling commodity prices also capped the upside for the currency given the country is a major exporter of crude oil.
−Removed: While the currency pair did rebound a bit in the second half of March amid a weaker USD and the boost in energy prices following the OPEC cut, it was only enough to reverse earlier losses.
−Removed: Additionally, the interest rate paid by the Depository has generally trended upward over the past year from zero, to the current interest rate of 2.76%, as set forth in the FXC Rate Chart above.
+Added: US economic resilience also boosted demand for the dollar, pressuring the pair.
+Added: While rising energy prices did limit some of the downside in the first quarter of 2024, given the country is a major exporter of crude oil, the positive impact was outweighed by the USD gains.
+Added: The Canadian Dollar (CAD/USD) moved slightly higher in the first half of the year of 2023 though the pair swung back and forth through the period, swayed by the US dollar, BoC’s rate hike policies and crude oil price moves.
+Added: While the CAD did gain a bit in the first half of the first quarter, as the US dollar weakened further on expectations for a softer Fed stance, the pair fell sharply from mid-February to mid-March, with the US dollar rebounding on signs of continued strength in the US labor market and inflation.
+Added: Struggling commodity prices also capped the upside for the currency, given Canada is a major exporter of crude oil.
+Added: However, the currency pair did rebound in the second half of March amid a weaker USD and the boost in energy prices following the OPEC production cut.
+Added: In the second quarter, while the pair was range bound in April and May, the CAD gained in June supported by the hawkish repricing of the BoC’s interest rate expectations while the US Fed paused.
+Added: The market’s more constructive view on oil prices and overall improvement in risk sentiment also provided support.
+Added: 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 2.51%, as set forth in the FXC 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.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.