Euro ETF Draws Fresh Capital as Traders Reassess Dollar Dominance
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The Invesco CurrencyShares Euro Trust, ticker FXE, attracted a sizable $11.03 million in net inflows on January 29, 2026, signaling renewed investor interest in euro exposure. With assets under management now at roughly $473.56 million, the latest move represents about 2.33% of the fund’s AUM—an unusually large single-day allocation shift for a currency-focused ETF.
The flows come as investors weigh the trajectory of European Central Bank policy against expectations for future Federal Reserve moves. A 2%-plus swing in assets suggests that some portfolio managers are positioning for a stronger euro, a moderation in U.S. dollar strength, or both. Such flows can amplify short-term price action in euro-linked products, especially when they occur in concentrated bursts rather than a slow build.
The related asset, FX:EUR-USD, is currently trading at 1.18538, up about 2.95% over the past three months, underscoring a steady grind higher in the common currency versus the dollar. The pair’s 1-day technical outlook is flashing a Buy signal, reinforcing the narrative that momentum has tilted modestly in favor of the euro, at least in the near term.
For currency-focused investors, the combination of positive short-term momentum in EUR/USD and meaningful new inflows into FXE points to a growing conviction that the euro could continue to benefit if rate differentials narrow or U.S. growth decelerates. For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.