Euro / US Dollar: trend-following strategy vs buy & hold
Currencies · tracked with Invesco CurrencyShares Euro Trust (FXE)
FXE holds euros, so its price follows the EUR/USD exchange rate — the most traded currency pair in the world.
Growth of 100 since 2005
buy & hold · total returnBuy & hold total return of Invesco CurrencyShares Euro Trust (FXE). The Strategy Alpha results and live signal for Euro / US Dollar are part of Plus.
What drives Euro / US Dollar
Interest-rate differences between the European Central Bank and the Federal Reserve, growth, trade balances and risk sentiment.
How a trend-following strategy handles Euro / US Dollar
Currencies move far less than stocks, but their trends can last years. For investors whose home currency is the euro or the dollar, this exchange rate also decides how much of a foreign return they actually keep.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
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Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.