CurrencyShares Euro Trust (FXE) loses 2 cents to $124.33 and has given back early gains in morning trading Monday. The euro is back testing1.25 against the buck and falling to the worst levels of the day amid an uptick in Spanish and Italian bond yields. Spain’s 10-year debt yields are now up 28 basis points to 6.44 percent and, in Italy, the 10-year yield ticked up 25 bps to 6 percent. Consequently, the early optimism about a Spanish bailout is fading and S&P 500 is falling 4.35 points to 1.321.31 Meanwhile, 8,394 puts and 2530 calls traded on FXE and 30-day ATM vols in the fund are up 6.5 percent to 13 — moving above the levels seen on Jun 1 when the euro fell to 52-week lows of less than 1.23 on the buck. Yet, there are no signs of panic yet today. CBOE Volatility Index (.VIX), ticked up just .18 to 21.41 and overall volumes in the options market is running about 85 percent the typical levels. 2.5 million calls and 2.3 million puts so far.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.