ETF Outlook for Thursday, June 5, 2014:
Rydex CurrencyShares Euro ETF (NYSE: FXE)
The European Central Bank (ECB) meets Thursday morning and it is widely expected that the central bank will make a few changes to their monetary policy.
The consensus is that the bank will lower its interest rate by 10 to 15 basis points from the current 0.25 percent. There is also heavy speculation that the deposit rate will be lowered into negative territory.
Related link: Several New Low Volatility ETFs Set To Launch On Thursday (JPMV, EUMV, QEFA, QEMM)
Other stimulus actions may also occur, as well as a change in the wording of the policy statement. All in all, it will likely be a policy shift that will affect the value of the euro. In anticipation of the meeting, FXE has dropped 2.5 percent in the last month after testing a multi-year high. The next level ...
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