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, 2022 was an annual nominal rate of -0.65%.
−Removed: The following chart provides the daily rate paid by the Depository since June 30, 2017:
+Added: The interest rate in effect as of September 30, 2022 was an annual nominal rate of -0.25%.
+Added: The following chart provides the daily rate paid by the Depository since September 30, 2017:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
2 unchanged sentences
When the interest deposited, if any, exceeds the sum of the Sponsor’s fee for the prior month plus other Trust expenses, if any, the Trustee converts the excess into USD at the prevailing market rate and distributes the USD as promptly as practicable to Shareholders on a pro-rata basis (in accordance with the number of Shares that they own).
−Removed: The Trust did not make any distributions during the quarter ended June 30, 2022.
+Added: The Trust did not make any distributions during the quarter ended September 30, 2022.
Critical Accounting Estimates
4 unchanged sentences
Results of Operations
−Removed: During the three and six months ended June 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
−Removed: Additionally, the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
−Removed: Although the full and direct impact of COVID-19 and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict 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) fell in the second quarter of the year, reaching close to parity with the U.S.
−Removed: dollar, as pressures from the rapidly strengthening greenback mounted – growing recession fears amid expectations for aggressive Federal Reserve (Fed) rate hikes boosted safe haven demand.
−Removed: The deepening energy crisis in Europe following its ban of Russian oil and refined products, and decreased Russia natural gas flows raised probabilities for a recession in the region, putting further pressure on European currencies.
−Removed: The Euro (EUR/USD) posted a small gain in the second quarter of 2021, largely due to a weakening dollar, given the U.S.’s lagged recovery from COVID-19 lockdowns and falling treasury yields in response to a more dovish Fed.
−Removed: However, gains were largely wiped out to end the quarter as the dollar surged on rising COVID-19 cases in Europe, which boosted safe haven demand.
−Removed: The Euro (EUR/USD) posted negative performance in the first half of the year as heightened geopolitical tensions in Q1 and rising recession fears in Q2 boosted investor demand for safe haven currencies like the U.S.
−Removed: dollar, while simultaneously weighed on its European counterparts.
−Removed: The deepening energy crisis in Europe, following its ban of Russia oil and refined products raised probabilities for a recession in the region.
−Removed: The Euro (EUR/USD) depreciated against the U.S.
−Removed: dollar in the first half of 2021.
−Removed: In the first quarter, the pair was pressured by the Eurozone’s struggle in battling yet another COVID-19 wave amid ongoing challenges in its vaccine rollout and a strengthening USD.
+Added: During the three and nine months ended September 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
+Added: Additionally, the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
+Added: Although the full and direct impact of the COVID-19 pandemic and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 cannot be known, it is believed that the COVID-19 pandemic and the Russia-Ukraine conflict 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) continued lower in the third quarter of 2022 as pressures from the rapidly strengthening greenback mounted amid heightened recession fears.
+Added: The US dollar surged to above a 20-year high in September as expectation for aggressive Federal Reserve (Fed) policy boosted demand for the currency.
+Added: The deepening energy crisis in Europe following indefinitely halted Russian natural gas pipeline flows, further raised probabilities for a recession in the region, putting further pressure on European currencies.
+Added: The Euro (EUR/USD) posted negative performance in the third quarter of 2021, largely due to a strengthening US dollar.
+Added: The Fed’s hawkish turn as it signaled the start of pandemic era stimulus tapering boosted treasury yields and hence demand for the dollar.
+Added: In addition, surging COVID-19 cases in Europe backtracked gains from earlier expectations for a speedy post-pandemic recovery in the region, pushing investors to the safe haven dollar and in turn weighing on European currencies.
+Added: The Euro (EUR/USD) posted negative performance year-to-date as 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: Higher interest rates also boosted demand for the country’s currency (in this case boosting the USD).
+Added: The deepening energy crisis in Europe, following its ban of Russian oil and refined products in Q2 and then the indefinite halt of Russian gas pipeline flows in Q3, raised probabilities for a recession in the region.
+Added: The Euro (EUR/USD) depreciated against the US dollar in the first three quarters of 2021.
+Added: In Q1, the pair was pressured by the Eurozone’s struggle in battling yet another COVID-19 wave amid ongoing challenges in its vaccine rollout and a strengthening USD.
In Q2, while the currency pair rallied initially on a weakening USD, the spike in the greenback on resurging COVID cases at the end of the quarter wiped out all earlier gains.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of -0.65%, as set forth in the FXE Rate Chart above.
+Added: The continued dollar rally in Q3 as the Fed turned more hawkish, signaling the start of stimulus tapering, and persistent COVID-19 concerns deepened the Euro’s negative year-to-date performance.
+Added: 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 -0.25%, as set forth in the FXE Rate Chart above.
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.
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.