7 unchanged sentences
These factors include fluctuations in the price of the euro, as the value of the Shares relates directly to the value of the euro held by the Trust and price fluctuations could materially adversely affect an investment in the Shares.
−Removed: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent annual report on Form 10-K for a description of other risks and uncertainties that may affect an investment in the Shares.
+Added: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent Annual Report on Form 10-K, together with the modified risk factor included in Item IA of this report, for a description of other risks and uncertainties that may affect an investment in the Shares.
Neither Invesco Specialized Products, LLC (the “Sponsor”) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report.
36 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of September 30, 2024 was an annual nominal rate of 2.30%.
−Removed: The following chart provides the daily rate paid by the Depository since September 30, 2019:
+Added: The interest rate in effect as of March 31, 2025 was an annual nominal rate of 1.50%.
+Added: The following chart provides the daily rate paid by the Depository since March 31, 2020:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
10 unchanged sentences
These estimates and assumptions affect the Trust’s application of accounting policies.
−Removed: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2023.
+Added: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates included in the Trust's Annual Report on Form 10-K for the year ended December 31, 2024.
Results of Operations
−Removed: 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.
−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 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.
−Removed: The euro (EUR/USD) ended the third quarter of 2024 higher, supported by a weaker US dollar.
−Removed: 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).
−Removed: 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.
−Removed: Markets also became concerned about the US election and its impact on the economy, which further weighed on the US dollar, boosting the pair.
−Removed: The euro (EUR/USD) ended the third quarter of 2023 in negative territory.
−Removed: In addition to renewed dollar strength, the pair was further pressured by weaker Eurozone economic outlook.
−Removed: 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.
−Removed: 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.
−Removed: The euro (EUR/USD) posted positive performance in the first three quarters of 2024, mainly due to dollar-driven gains in the third quarter.
−Removed: 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.
−Removed: In comparison, the European Central Bank (ECB) was more dovish given its noticeably weaker economy, officially kicking off its easing cycle in June.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: This sent the USD, and hence the pair on a mini rollercoaster ride through the first half of the year.
−Removed: 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.
−Removed: 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.
+Added: During the three months ended March 31, 2025 and 2024, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting US recession concerns for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of global tariffs, US recession concerns, Fed easing expectations and rising geopolitical tensions, on the Trust's net comprehensive income (loss) during the three months ended March 31, 2025 and 2024, 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) saw positive performance in the first quarter of 2025, largely supported by US dollar (USD) weakness.
+Added: Macroeconomic concerns reignited by President Trump’s shifting global tariff policies and growing stagflation fears dented consumer, investor, as well as business sentiment in the US, leading to a sharp downturn in domestic financial markets.
+Added: In addition, European currencies have been propped up by major defense and infrastructure spending plans which are expected to boost the region’s growth prospects.
+Added: More specifically, the European Commission announced the ReArm Europe Plan/Readiness 2030 in March, which enables over €800 billion to strengthen the continent’s defense capabilities.
+Added: The Euro (EUR/USD) posted a loss in the first quarter of 2024 though price action was largely driven by USD moves.
+Added: The Federal Reserve’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts;
+Added: higher rates generally provide support for the country’s currency.
+Added: US economic resilience and heightened geopolitical tensions also boosted demand for the USD, which is traditionally seen as a safe haven.
+Added: In comparison, the European Central Bank (“ECB”) was more dovish, looking to cut rates earlier than the Fed, and its economy was notably softer.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past year to the current interest rate of 1.50%, 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.