Euro ETF Ends Year with Outflows as Investors Question Single-Currency Bet
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Invesco’s Invesco CurrencyShares Euro Trust (FXE) closed out 2025 on a cautious note, recording net outflows of $5.43 million on December 31. The redemption, while modest in absolute terms, represents roughly 1.28% of the fund’s latest reported assets under management of $422.84 million, signaling a measurable bout of year-end repositioning among euro-focused investors.
The related asset, FX:EUR-USD, is currently trading at 1.1746, essentially flat over the past three months with a marginal gain of about 0.34%. Despite the tepid medium‑term move, the short‑term picture looks more constructive: the pair’s 1‑day technical signal stands at Buy, hinting at nascent bullish momentum in the common currency against the dollar.
The divergence between flows and price action underscores a market split in views on the euro’s near-term trajectory. Some investors appear to be locking in profits or trimming risk after a relatively stable quarter for EUR/USD, even as technical gauges suggest the potential for further upside. That tension will likely define positioning in FXE in early 2026, as traders weigh shifting central bank expectations, inflation trends, and growth differentials between the eurozone and the U.S.
For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.