Consequently, the ECB’s extended loose monetary outlook is weighing on the euro currency, which is trading near a seven-month low of $1.0878 on Monday. The euro currency and related CurrencyShares Euro Currency Trust (NYSEArca: FXE) continued to weaken after ECB President Mario Draghi quashed rumors of QE tapering.

“Draghi was dovish because he said that the tapering rumors were wrong and purchases won’t be stopped abruptly,” Sam Lynton-Brown, a foreign-exchange strategist at BNP Paribas SA, told Bloomberg. “They’re likely to extend QE in December and they may do so at the current rate. That’s consistent with the euro weakening.”

Meanwhile, market observers are increasing bets that the U.S. Federal Reserve could hike interest rates in December, further strengthening the U.S. dollar against the euro currency.

Consequently, investors who expect in an improving Eurozone economy, along with a depreciating euro currency, should consider currency-hedged ETF options to gain exposure to the region.

For instance, the Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ), iShares Currency Hedged MSCI EMU ETF (NYSEArca: HEZU) and WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) target Eurozone countries but try to diminish the negative effects of a depreciating EUR – a weakening foreign currency would normally reduce returns on overseas securities when converted back into a stronger U.S. dollar.

For more information on the European markets, visit our Europe category.

CurrencyShares Euro Currency Trust (NYSEArca: FXE)