Should I Buy Euro Currency Trust (FXE)? Finance YouTuber Analysis

The YouTuber recommends a call spread strategy on FXE, similar to UDN, to capitalize on the potential strengthening of the Euro against a weakening dollar. He notes that while the trust itself doesn't move much in absolute terms, options can provide significant returns.

“I would instead use that same call spread strategy you we used with the udn for example buying the September $60 calls on the Yen trust for $155 and then selling the same number of $61 calls for $115 each means a cost basis of 40 cents each a potential 150% return if the trust finishes above $61 by expiration.”

The YouTuber suggests buying the Euro Trust ETF as a short-term investment. He anticipates a weakening US dollar due to potential government shutdown chaos, slowing US economy, and a shift in the Federal Reserve's stance on interest rates, which would cause the Euro to strengthen against the dollar.

“There are currency ETFs that you can buy like the Euro trust the ticker fxe or the yust ticker fxy that will go up if those currencies strengthen against the dollar or the dollar weakens.”

The YouTuber suggests buying the CurrencyShares Euro Trust (FXE) to bet on a weakening dollar. The dollar has reached a 36-year high against the euro, but this strength is unsustainable due to political pressure, a weakening economy, and the long-term decline in the dollar's use as a reserve currency. FXE is down 12% and is expected to rebound on any dollar weakness.

“there's also the currency shares euro trust ticker fxe which does the same thing on that euro dollar per unit and is down 12 since the beginning of the year”