ETF Trends
ETF Trends

Exchange traded funds indexed to the euro’s fluctuations versus the U.S. dollar rose Thursday after Greece reportedly scrapped a plan to hold a referendum on the latest bailout package from the European Union.

Earlier this week amid weakness in the euro following the sudden announcement from Greece that the bailout plan would be subject to a vote, we also witnessed bullish looking options flows in two euro currency ETFs.

First, in CurrencyShares Euro Trust (NYSEArca: FXE), which traded at its lowest level on Tuesday ($135.67 a share) in more than a week after trading as high as $141.93 just three sessions prior, call buyers entered the picture perhaps looking for a spring back in the currency.

Similarly, in ProShares UltraShort Euro (NYSEArca: EUO), which is designed to deliver the two times the daily inverse return of the euro currency, put buyers were present (which, since this is an inverse product, is equivalent to a bullish bet on FXE).

Sure enough, these options players were directionally correct in the short term, as we did see the euro regain some strength during Wednesday’s session against the U.S. dollar, finishing up nearly 0.30%.

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