CurrencyShares Euro Trust (FXE) set a new 52-week high in Wednesday’s premarket as the euro traded above $1.35 for the first time since 2011 on receding fear over Europe’s debt crisis.
The currency ETF is up 12% since the July 2012 low. A rising euro and weaker U.S. dollar have helped provide a tailwind to riskier assets, including global stocks.
“The world is shifting from fear to hunt for opportunity,” said Neil Jones at Mizuho Corporate Bank, in a Bloomberg News report. “Slowly but surely, economic data in the euro zone is going in the right direction and the numbers today were encouraging. The euro is leading the way today.”
Improvement in European sovereign debt and a stronger euro have also boosted the region’s stock markets. For example, Vanguard MSCI Europe ETF (VGK) has rallied 25% the past six months, more than doubling the 12% gain posted by SPDR S&P 500 (SPY).
CurrencyShares Euro Trust
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