Euro Bears Tighten Their Grip as Investors Pull $5.4 Million from Invesco’s FXE Trust

Euro Bears Take the Wheel as Investors Pull Cash from Invesco’s FXE Trust

Invesco CurrencyShares Euro Trust’s FXE recorded a sizeable outflow of $5.38 million on January 15, 2026, underscoring renewed investor caution toward the single currency. The redemption, equal to roughly 1.25% of the fund’s $430.44 million in assets under management, marks a meaningful shift in positioning for an ETF designed to mirror moves in the euro against the U.S. dollar.

While a 1.25% swing may not constitute a stampede for the exits, it does suggest that institutional and sophisticated retail investors are trimming euro exposure rather than treating recent weakness as a buying opportunity. The outflow comes at a time when currency markets are increasingly focused on the relative pace of interest-rate cuts and growth trajectories between the eurozone and the United States.

The related asset, FX:EUR-USD, is trading at 1.16103, down about 0.77% over the past three months. Technically, the pair is flashing a short-term bearish bias, with a 1-day signal of Sell. That alignment between negative flows in FXE and a weak technical tone in EUR/USD reinforces the view that traders remain skeptical about the euro’s near-term upside, even as valuations look less stretched than earlier in the year.

For now, FXE’s outflows are more a sign of cautious repositioning than outright capitulation, but if euro weakness persists and the technical “Sell” signal hardens into a longer-term downtrend, more substantial redemptions could follow as investors pivot toward dollar strength or diversify into higher-yielding currencies.

For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.