ETF Trends
ETF Trends

An exchange traded fund tied to the euro’s movements against the U.S. dollar was lower in Thursday’s preopen trading after the European Central Bank held interest rates steady at 1.5%.

CurrencyShares Euro Trust (NYSEArca: FXE) slipped 0.5% before the bell as the Eurozone’s common currency weakened versus the dollar. The currency ETF is up 5.7% year to date, according to Morningstar, as the euro has gained ground against the dollar despite the sovereign debt crisis in Europe.

Investors will be keeping tabs on a press conference later in the morning with ECB President Jean-Claude Trichet, who will discuss the decision with reporters.

The market is betting that Trichet will change course and signal a pause in the recent monetary tightening cycle, Reuters reported.

“But analysts said the single currency could get a brief lift if Trichet quashes the possibility of rate cuts later in the year, which are priced into money markets, though concerns about a worsening Eurozone debt crisis will keep investors inclined to sell the currency on dips,” the news service said.

The euro ETF is hovering right around its 200-day moving average.

CurrencyShares Euro Trust

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

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