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 2.70%.
−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 2.50%.
+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.
12 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.
−Removed: 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.
−Removed: The euro (EUR/USD) posted a loss in the first quarter of 2024 though price action was largely driven by USD moves.
−Removed: The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts;
−Removed: higher rates generally provide support for the country’s currency.
−Removed: US economic resilience and heightened geopolitical tensions also boosted demand for the USD, which is typically seen as a safe haven.
−Removed: In comparison, the European Central Bank (“ECB”) was more dovish, looking to cut rates earlier than the Fed, and its economy was notably softer.
−Removed: The euro (EUR/USD) posted a small gain in the first quarter of 2023 with USD moves accounting for most of the price
−Removed: The greenback declined significantly in January, boosting the pair, as expectations that the Fed will soon start to back down
−Removed: from its aggressive rate hikes grew.
−Removed: However, from February through early March the currency pair fell under pressure as the USD
−Removed: rebounded amid persistently high US inflation and strong labor data, which reversed bets for a dovish Fed.
−Removed: While this downturn wiped
−Removed: 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
−Removed: returning speculation for a softer Fed stance amid heightened banking sector volatility.
−Removed: 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.
+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.
+Added: 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.
+Added: The euro (EUR/USD) ended the second quarter of 2024 with a small loss.
+Added: Price action was once again mostly driven by US Dollar moves.
+Added: Sticky inflation in the US repeatedly pushed out Fed easing expectations, keeping treasury yields propped up.
+Added: In comparison, the European Central Bank (ECB) began its easing cycle in June on expectations of weaker economic growth and hence lower inflation.
+Added: Higher interest rates generally boost the country’s currency and vice versa.
+Added: The euro (EUR/USD) ended the second quarter of 2023 more or less flat after seesawing largely on US Dollar moves.
+Added: 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.
+Added: 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.
+Added: Instead, Fed’s stance turned more hawkish in May causing the USD to rally, hence weighing on the EUR/USD.
+Added: The euro (EUR/USD) posted a loss in the first half of 2024 though price action was largely driven by US Dollar moves.
+Added: The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation repeatedly pushed out expectations for US rate cuts.
+Added: 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.
+Added: In comparison, the European Central Bank (ECB) was more dovish given its noticeably weaker economy, officially kicking off its easing cycle in June.
+Added: 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.
+Added: 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.
+Added: This sent the USD, and hence the pair, on a rollercoaster ride in the first half of 2023.
+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 2.50%, 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.
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.