Euro Continues to Fly: Weekly Currency ETF Report
Euro climbs to 3-week high against the dollar and 7-month high against the yen
The euro had another good week as hopes continued that European Union finance ministers would be able to reach a deal on a solution for addressing the €15 billion shortfall in Greece’s budget. The shortfall resulted when the 
nation’s “troika” of lenders agreed to allow Greece two extra years (until 2016) to reduce its deficit to 2 percent of gross domestic product (NYSEARCA:GREK).
On Friday, the CurrencyShares Euro Turst ETF (NYSEARCA:FXE) broke above both its 200-day moving average (127.44) and its 50-day moving average (128.29) to close at 128.91. After a double top had formed on the FXE chart on October 17, the ETF continued its slide until November 13, when it hit 126.15. Important Week for the Euro FXE’s next resistance level is 130.40, the high-point of the double top. (Chart courtesy of Stockcharts.com)
The dollar finally lost a bit of its momentum against the yen on Friday when it closed at 82.29 yen. During the past two weeks, the dollar has advanced nearly 4 percent against the yen (NYSEARCA:FXY). The yen has been sinking as a result of expectations that Japan’s December election will bring the Liberal Democratic Party to power. The party’s leader, Shinzo Abe, has advocated putting pressure on the Bank of Japan to reduce short-term interest rates to below zero and to initiate a bond-buying program.
Currency ETF Update:
Here is how the following indices and ETFs performed from the close on Friday, November 16 until the close on Friday, November 23:
$US Dollar Index: -0.01%
PowerShares DB US Dollar Index Bullish Fund ETF (NYSEARCA:UUP): -0.01%, This ETF reflects US dollar performance as indicated by the Deutsche Bank Long US Dollar Index (USDX) Futures Index (DB Long USD Futures Index). The USDX Index invests solely in Long USDX Futures Contracts, and compares the performance of the US dollar against the Japanese Yen, the Euro, the Swiss Franc, the British Pound, the Canadian Dollar, and the Swedish Krona.
CurrencyShares Euro Trust ETF (NYSEARCA:FXE): +0.01%, This ETF is designed to track the performance of the Euro dollar. CurrencyShares Euro Trust ETF (NYSEARCA:FXE) is a trust denominated in Euro dollars, and the depository bank is JP Morgan Chase Bank, N.A. London Branch.
ProShares UltraShort Euro ETF (NYSEARCA:EUO): -0.03%, This ETF tracks the 2X inverse daily performance of the Euro dollar in US dollar prices. The ProShares UltraShort Euro ETF (NYSEARCA:EUO) relies on the EUR/USD cross rate as determined by Reuters by4 PM EST to determine the price of the Euro in US dollars.
CurrencyShares Australian Dollar Trust ETF (NYSEARCA:FXA): +0.01%, This ETF is designed to track the performance of the Australian dollar. The CurrencyShares Australian Dollar Trust ETF (NYSEARCA:FXA) is a trust denominated in Australian dollars, and the depository bank is JP Morgan Chase Bank, N.A. London Branch.
CurrencyShares Swiss Franc Trust ETF (NYSEARCA:FXF) +0.02% This ETF is designed to track the performance of the Swiss Franc. The Swiss franc is the national currency of Switzerland and Liechtenstein and the currency of the accounts of the Swiss National Bank, the central bank of Switzerland. The Swiss franc is the sixth-most-traded currency in the world, accounting for 6.4% of global foreign exchange transactions. The USD/Swiss franc pair is the fifth-most-traded currency pair.
CurrencyShares Japanese Yen Trust ETF (NYSEARCA:FXY): -0.01%, This ETF is designed to track the performance of the Japanese Yen. The CurrencyShares Japanese Yen Trust ETF (NYSEARCA:FXY) is a trust denominated in Japanese Yen, and the depository bank is JP Morgan Chase Bank, N.A. London Branch.
Bottom Line: The euro has been advancing against the dollar primarily on the hope that a deal can be reached concerning the shortfall in the Greek budget. Once that deal is reached, a new source of enthusiasm will be needed to keep the euro advancing. Coming Weeks’ 10 Market Movers
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