The FXE ETF: The Prospects For The Euro's Bullish Trend (Rating Downgrade)
The euro has been in a strong bullish trend against the U.S. dollar throughout 2025, supported by macroeconomic and policy factors. Key drivers for euro strength include U.S. debt concerns, lower U.S. interest rate prospects, and trade policy impacts on the dollar. Risks to the euro's rally include European debt issues, geopolitical tensions, and potential flight-to-safety flows into the dollar.
FXE: The Trend Remains Bullish
The Euro has rallied 16.23% against the U.S. dollar in 2025, breaking key technical resistance and maintaining a bullish trend. FXE ETF effectively tracks the Euro/USD exchange rate, offering liquidity and convenience for investors seeking Euro exposure in standard brokerage accounts. Despite the Euro's strength versus the dollar, gold has outperformed both, becoming the second-largest reserve asset for central banks, surpassing the Euro.
3 Reasons Not To Hedge Today With FXE
Despite recent inflows into FXE and euro strength, I believe U.S. equities and bonds remain the superior long-term allocation for global investors. The underlying narrative is bearish on the dollar, but in my view, it's not a trend justified from an intermarket perspective. That's why I believe the signs of overextension could trigger a contrarian market reaction.
Inside Euro's Strength in 2025: What's Ahead for ETF FXE?
FXE ETF gained about 14% in 2025 as euro gains steam versus the U.S. dollar ETF UUP. Policy shifts, solid EU GDP & fading demand for U.S. assets are driving the move.
Currency ETF (FXE) Hits New 52-Week High
For investors seeking momentum, Invesco CurrencyShares Euro Trust FXE 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.
6 ETFs Showing Great Resilience Amid Market Sell-Offs
U.S. stocks have been witnessing massive sell-offs this month due to trade tensions. However, these ETFs survived the bloodbath.
FXE: Euro Is A Bad USD Hedge Now
FXE provides unleveraged exposure to EUR/USD, making it a hedging option for the U.S. dollar. Its recent rally has been fueled by market optimism related to Germany's potential for fiscal expansion and the ECB's indication that it might go slower on reducing the borrowing costs. The current threats to market expectations make FXE's trajectory quite precarious, and investors may want to consider alternatives if a hedge against the dollar is ultimately what they seek.
Union Pacific says FXE issuing some US-Mexico grain shuttle permits
Union Pacific Corp said on Wednesday that Ferromex (FXE), the Mexican railroad it interchanges with, has resumed issuing permits for grain shuttle trains at the U.S.-Mexico border crossing at Eagle Pass, Texas.
ETFs in Focus on ECB's First Rate Cut in Five Years
The European Central Bank (ECB) has finally cut its key interest rate, marking the first reduction since September 2019.
