22 unchanged sentences
Liquidity and Capital Resources
+Added: The Trust does not have any material cash requirements as of the end of the latest fiscal period.
The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs.
7 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 pay any distributions during the quarter ended December 31, 2021.
+Added: Distributions paid during the current reporting period follow (annualized yield reflects the estimated annual yield an investor would receive if a monthly distribution stayed the same for the entire year going forward, and is calculated by annualizing the monthly distribution and dividing by the Trust NAV for the dates listed below):
+Added: FXE Distribution History
+Added: Annualized Yield
Results of Operations
5 unchanged sentences
rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
+Added: While the Euro (EUR/USD) posted a negative annual performance in 2022, it did make a strong comeback to end the year.
+Added: 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: Furthermore, higher interest rates boost demand for the country’s currency (in this case, boosting the USD).
+Added: The deepening energy crisis in Europe, following the announcement of its upcoming ban of Russian oil and refined products in Q2, and then the indefinite halt of Russian gas pipeline flows in Q3, also raised probabilities for a regional recession.
+Added: However, the EUR appreciated in Q4 as the dollar retreated on expectations for a dovish U.S.
+Added: Federal Reserve System (the “Fed”) pivot.
In 2021, the euro had its largest annual decline against the U.S.
1 unchanged sentence
Reimposed activity restrictions in several European Union member states to control the spread of the COVID-19 Omicron variant and a deteriorating Eurozone trade balance, coupled with the European Central Bank’s (ECB) policy divergence with other major central banks in terms of normalizing monetary policy, weighed on the currency.
−Removed: While the ECB has remained relatively dovish and is not expected to increase interest rates until early 2023, other central banks, such as the U.S.
−Removed: Federal Reserve System (the Fed) and the Bank of England, have already raised rates or announced plans to raise rates by the end of 2022.
−Removed: 2020 was a positive year for the euro (EUR/USD), marking its largest annual gain against the U.S.
−Removed: Dollar since 2017 and ending the year at over two-year highs.
−Removed: After declining to 3-year lows at the onset of the COVID-19 pandemic in early 2020 as investors rushed towards the safe haven U.S.
−Removed: Dollar, a favorable risk environment driven by unprecedented global stimulus and vaccine optimism throughout 2020 led to a weakening of the U.S.
−Removed: Dollar, driving up the EUR/USD rate by the end of 2020.
−Removed: Simultaneously, growing optimism around a post-Brexit trade deal helped the euro advance through the end of 2020.
−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: While the ECB has remained relatively dovish and is not expected to increase interest rates until early 2023, other central banks, such as the Fed and the Bank of England, have already raised rates or announced plans to raise rates by the end of 2022.
+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 0.60%, 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.
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.