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 June 30, 2024 was an annual nominal rate of 2.50%.
−Removed: The following chart provides the daily rate paid by the Depository since June 30, 2019:
+Added: The interest rate in effect as of September 30, 2024 was an annual nominal rate of 2.30%.
+Added: The following chart provides the daily rate paid by the Depository since September 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 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.
−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 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.
−Removed: The euro (EUR/USD) ended the second quarter of 2024 with a small loss.
−Removed: Price action was once again mostly driven by US Dollar moves.
−Removed: Sticky inflation in the US repeatedly pushed out Fed easing expectations, keeping treasury yields propped up.
−Removed: In comparison, the European Central Bank (ECB) began its easing cycle in June on expectations of weaker economic growth and hence lower inflation.
−Removed: Higher interest rates generally boost the country’s currency and vice versa.
−Removed: The euro (EUR/USD) ended the second quarter of 2023 more or less flat after seesawing largely on US Dollar moves.
−Removed: 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.
−Removed: 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.
−Removed: Instead, Fed’s stance turned more hawkish in May causing the USD to rally, hence weighing on the EUR/USD.
−Removed: The euro (EUR/USD) posted a loss in the first half of 2024 though price action was largely driven by US Dollar moves.
−Removed: The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation repeatedly pushed out expectations for US rate cuts.
−Removed: 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: During the three and nine months ended September 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 nine months ended September 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 third quarter of 2024 higher, supported by a weaker US dollar.
+Added: The greenback retreated on dovish sentiment leading into the Federal Reserve’s (Fed) first rate cut in September and the surprise hike in Japanese rates, which led to a rapid unwind of the US dollar, Japanese yen carry trade (i.e., borrowing in the Japanese yen and investing it in a higher yielding asset like US treasuries).
+Added: Disappointing US labor data also briefly reignited US hard landing concerns but there were also worries about sticky inflation and weaker growth in the Eurozone.
+Added: Markets also became concerned about the US election and its impact on the economy, which further weighed on the US dollar, boosting the pair.
+Added: The euro (EUR/USD) ended the third quarter of 2023 in negative territory.
+Added: In addition to renewed dollar strength, the pair was further pressured by weaker Eurozone economic outlook.
+Added: Unlike the Fed which has kept to its more hawkish messaging, keeping open chances for further hikes, the European Central Bank (ECB) has already signaled its September hike to be its last.
+Added: The US economy was also expected to outperform the Eurozone as suggested by the EU’s economic growth forecasts – domestic demand continued to falter amid high inflation and the Eurozone PMI continued to signal a contraction.
+Added: The euro (EUR/USD) posted positive performance in the first three quarters of 2024, mainly due to dollar-driven gains in the third quarter.
+Added: The pair was initially pressured in the first quarter as the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation repeatedly pushed out expectations for US rate cuts.
In comparison, the European Central Bank (ECB) was more dovish given its noticeably weaker economy, officially kicking off its easing cycle in June.
−Removed: 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.
−Removed: 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.
−Removed: This sent the USD, and hence the pair, on a rollercoaster ride in the first half of 2023.
+Added: However, the US dollar turned sharply lower in the third quarter after the Fed officially kicked off its own easing cycle, the Bank of Japan surprised markets with a rate hike, and concerns about the impact of the US election grew.
+Added: The euro (EUR/USD) ended the first three quarters of 2023 slightly lower 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.
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 2.30%, as set forth in the FXE Rate Chart above.
4 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.