36 unchanged sentences
Results of Operations
−Removed: 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.
−Removed: 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: During the years ended December 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: 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 years ended December 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.
+Added: The euro (EUR/USD) ended 2024 lower pressured heavily by US dollar strength in the fourth quarter.
+Added: In the first quarter, the pair fell on the Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation, which repeatedly pushed out expectations for US rate cuts.
+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: However, the greenback 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, allowing the pair to move back into positive territory.
+Added: Those gains were short-lived though, as Trump-driven US dollar strength in the fourth quarter dealt a heavy blow.
+Added: Many of the president’s campaigned policies were expected to raise inflation risk, potentially leading to higher rates in 2025.
+Added: In addition, tariffs generally weigh on foreign currencies, further boosting the USD.
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.
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However, much of that was reversed in the fourth quarter as dollar weakness ensued amid strengthening rate cut expectations in the US.
−Removed: 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 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.
−Removed: 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 the second quarter, and then the indefinite halt of Russian gas pipeline flows in the third quarter, also raised probabilities for a regional recession.
−Removed: However, the EUR appreciated in the fourth quarter as the dollar retreated on expectations for a dovish U.S.
−Removed: Federal Reserve System (the “Fed”) pivot.
−Removed: Additionally, the interest rate paid by the Depository has generally trended upward over the past year from sub-zero, to the
−Removed: current interest rate of 2.70%, as set forth in the FXE Rate Chart above.
−Removed: As long as the interest income, if any, exceed the Sponsor's
−Removed: fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past year to the current interest rate of 1.90%, as set forth in the FXE Rate Chart above.
+Added: As long as the interest income, if any, exceed the Sponsor's 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.