36 unchanged sentences
Results of Operations
−Removed: During the years ended December 31, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by
−Removed: market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or
−Removed: infrequent event.
−Removed: Although the full and direct impact of COVID-19 on the Trust’s net comprehensive income (loss) during the years
−Removed: ended December 31, 2022 and 2021 cannot be known, it is believed that COVID-19 has impacted the Closing Spot Rate, the interest
−Removed: rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
+Added: During the years ended December 31, 2023 and 2022, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from the US banking sector turmoil, ambiguity around the Federal Reserve's tightening cycle, and rising geopolitical concerns from the conflict in the Middle East, for 2023, and uncertainty caused by the novel coronavirus known as COVID-19, as well as the Russia-Ukraine conflict, for 2022, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of the COVID-19 pandemic, the Russia-Ukraine conflict, the US banking sector turmoil, and the Israel-Gaza conflict on the Trust's net comprehensive income (loss) during the years ended December 31, 2023 and 2022 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 euro (EUR/USD) ended 2023 higher with US 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.
+Added: The greenback swayed sharply between gains and losses through most of the period as expectations that the Fed will 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 debacle, inflation prints and Fed comments.
+Added: This sent the USD, and hence the pair on a mini rollercoaster ride through the first half of the year.
+Added: The currency pair depreciated in the third quarter, pressured by renewed dollar strength – the Fed’s hawkish-for-longer rhetoric compared to the ECB and US economic resilience helped the dollar rebound to its highest since November 2022.
+Added: However, much of that was reversed in the fourth quarter as dollar weakness ensued amid strengthening rate cut expectations in the US.
While the Euro (EUR/USD) posted a negative annual performance in 2022, it did make a strong comeback to end the year.
−Removed: Heightened geopolitical tensions in Q1 and rising recession fears in Q2 and Q3 boosted investor demand for safe haven currencies like the US dollar, while simultaneously weighed on its European counterparts.
+Added: Heightened geopolitical tensions in the first quarter and rising recession fears in the second and third quarter boosted investor demand for safe haven currencies like the US dollar, while simultaneously weighing on its European counterparts.
Furthermore, higher interest rates boost demand for the country’s currency (in this case, boosting the USD).
−Removed: The deepening energy crisis in Europe, following the announcement of its upcoming ban of Russian oil and refined products in Q2, and then the indefinite halt of Russian gas pipeline flows in Q3, also raised probabilities for a regional recession.
−Removed: However, the EUR appreciated in Q4 as the dollar retreated on expectations for a dovish U.S.
+Added: The deepening energy crisis in Europe, following the announcement of its upcoming ban of Russian oil and refined products in the second quarter, and then the indefinite halt of Russian gas pipeline flows in the third quarter, also raised probabilities for a regional recession.
+Added: However, the EUR appreciated in the fourth quarter as the dollar retreated on expectations for a dovish U.S.
Federal Reserve System (the “Fed”) pivot.
−Removed: In 2021, the euro had its largest annual decline against the U.S.
−Removed: Dollar since 2015.
−Removed: Reimposed activity restrictions in several European Union member states to control the spread of the COVID-19 Omicron variant and a deteriorating Eurozone trade balance, coupled with the European Central Bank’s (ECB) policy divergence with other major central banks in terms of normalizing monetary policy, weighed on the currency.
−Removed: While the ECB has remained relatively dovish and is not expected to increase interest rates until early 2023, other central banks, such as the Fed and the Bank of England, have already raised rates or announced plans to raise rates by the end of 2022.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements this quarter, to the current interest rate of 0.60%, as set forth in the FXE Rate Chart above.
−Removed: As long as the Sponsor’s fee and the interest expense on currency deposits, if any, exceed interest income, the Trust will incur a net comprehensive loss.
+Added: Additionally, the interest rate paid by the Depository has generally trended upward over the past year from sub-zero, to the
+Added: current interest rate of 2.70%, as set forth in the FXE Rate Chart above.
+Added: As long as the interest income, if any, exceed the Sponsor's
+Added: fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
Critical Accounting Estimates
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.