Euro ETF Sees Sharp Outflows as Traders Recalibrate Dollar Bets
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The Invesco CurrencyShares Euro Trust, ticker FXE, recorded a notable single-day outflow of $10.83 million on January 21, 2026, as investors trimmed exposure to the euro. The redemption amounts to roughly 2.63% of the fund’s latest reported assets under management, which stand at $411.35 million, signaling a meaningful—though not yet destabilizing—shift in positioning.
The move comes even as the related currency pair, FX:EUR-USD, trades near $1.16933, up about 0.86% over the past three months. Short-term technicals remain constructive, with the pair flashing a Strong Buy signal on the one-day view, suggesting that momentum and systematic strategies may still favor the euro against the dollar.
The divergence between positive near-term technicals in EUR/USD and the substantial outflows from FXE highlights the push-and-pull between traders taking profits after a modest three-month grind higher and those betting on further euro strength. Some investors may be reassessing their hedging and carry strategies as markets weigh the next steps from the European Central Bank and the Federal Reserve, with interest-rate expectations continuing to drive relative currency valuations.
For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.