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Currency ETF (FXE) Hits New 52-Week High

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For investors seeking momentum, Invesco CurrencyShares Euro Trust (FXE - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 13.16% from its 52-week low price of $94.08/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

FXE in Focus

The Invesco CurrencyShares Euro Trust is designed to track the price of the Euro. The product charges 40 bps in annual fees (See: All Currency ETFs).

Why the Move?

The fund provides exposure to the Euro relative to the greenback, gaining when the dollar depreciates. Driven by the Trump administration’s chaotic tariff policies and a shift in investor focus away from U.S. assets, the greenback is on a gradual decline. A redirection of funds away from the United States reduces demand for the greenback, weakening it as a result and reducing its value.

Additionally, weakening investor confidence in the U.S. economy, fueled by President Trump’s recent remark on Jerome Powell, has pushed the greenback to its lowest level in three years.  

More Gains Ahead?

Currently, FXE has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 10.25 (as per Barchart.com), which gives cues of a further rally.


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