Exchange traded funds pegged to the euro were set for a lower open Thursday after a lackluster government bond auction in Italy.
The euro fell to a decade-low against the yen and the lowest in about a year versus the U.S. dollar, Reuters reported.
“The euro remains biased towards the downside, not just from a debt crisis perspective, but also from a fundamental perspective, with the European Central Bank expected to move towards more aggressive quantitative easing,” Audrey Childe-Freeman, EMEA head of currency strategy at JP Morgan Private Bank, told Reuters.
“The Italian auction result was not a disaster, yields were lower but the bid-to-covers were a bit weaker, so it’s certainly not an all-clear on the debt crisis,” the strategist said.
The euro has fallen below the key level of $1.30 this week on worries Europe’s debt storm is worsening. Speculators are betting heavily against the common currency. [Euro ETFs Slip]
Here’s a look at the other top ETF stories making the rounds online this morning:
- Top dividend ETFs. [Investors Business Daily]
- ETF outlook for 2012. [ETF Guide]
- Growth ETFs for 2012. [Index Universe]
- Insider trading? There’s an ETF for that. [The Street]
- Absolute return ETF to focus on hedging sectors. [Barron’s]
- Mortgage REIT ETF heads list of dividend funds. [Barron’s]
iPath EUR/USD Exchange Rate ETN (NYSEArca: ERO)