---

# UNITED STATES SECURITIES AND
EXCHANGE COMMISSION

# Washington D.C. 20549

_________________

# FORM 10-Q/AAmendment No. 1 _________________

X QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934  For the
quarterly period ended January 31, 2006

or

TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934  For the
transition period from ____ to ____

Commission File Number
001-32694

|CurrencySharesSM Euro Trust                           
|------------------------------------------------------
|Sponsored by Rydex Specialized Products LLC,          
|d/b/a Rydex Investments                               
|(Exact name of registrant as specified in its charter)

|New York                        | No. 20-3613421                   
|------------------------------- | ---------------------------------
|(State or other jurisdiction of | (IRS Employer Identification No.)
|incorporation or organization) 

|9601 Blackwell Road, Suite 500           |           
|---------------------------------------- | ----------
|Rockville, Maryland                      | 20850     
|(Address of principal executive offices) | (Zip Code)

(301) 296-5100
 (Registrants telephone number, including area code)

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .

Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.
See definition of accelerated filer and large accelerated filer in Rule 12b-2
of the Exchange Act. (Check one): Large accelerated filer  Accelerated filer 
Non-accelerated filer X

Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No
X.

---

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# EXPLANATORY NOTE

This Form 10-Q/A (this
Amendment) hereby amends the Quarterly Report on Form 10-Q of
CurrencySharesSM Euro Trust (the Trust) for the quarterly period
ended January 31, 2006, filed on March 22, 2006 (the Original Filing). The
revisions contained in this Amendment include the restatement of the financial statements
of the Trust to correct an accounting error for the euro received by the Trust in Basket
(as defined below) creations and paid by the Trust in Basket redemptions that related to
accrued interest. Such interest receipts or payments were incorrectly included in the
calculation of interest receivable and interest income of the Trust, rather than cash and
redeemable capital shares. Additionally, Part I, Item 4  Controls & Procedures
and Part II, Item 1A  Risk Factors have been amended. Finally, in accordance with
applicable Securities and Exchange Commission (SEC) rules, this Form 10-Q/A
includes updated certifications from the Sponsors principal executive officer and
principal financial officer.

For the convenience of the reader,
the remaining sections of the Original Filing, although not revised, are restated in this
Amendment. Accordingly, this Amendment continues to describe conditions as of the date of
the Original Filing, and should be read in conjunction with filings of the Trust made with
the SEC subsequent to the Original Filing.

2

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# CURRENCYSHARESSM
EURO TRUST Index

|Caption | Page                 
|------- | ---------------------
|PART I  | FINANCIAL INFORMATION
|Item 1. | Financial Statements 

|                                                                                                  |  
|------------------------------------------------------------------------------------------------- | -
|Statement of Financial Condition at January 31, 2006 (unaudited and  restated) and December 5,    | 4
|2005 (Date of Inception)                                                                         
|Statement of Income and Comprehensive Income for the period from December 5, 2005 (Date of        | 5
|Inception) to January 31, 2006 (unaudited and restated)                                          
|Statement of Changes in Shareholders Equity for the period from December 5, 2005 (Date of        | 6
|Inception) to January 31, 2006 (unaudited and restated)                                          
|Statement of Cash Flows the period from  December 5, 2005 (Date of Inception) to January 31, 2006 | 7
|(unaudited and restated)                                                                         
|Notes to Financial Statements (unaudited)                                                         | 8

|Item 2.    | Managements Discussion and Analysis of Financial           | 15
|---------- | ----------------------------------------------------------- | --
|           | Condition and Results of Operations                        
|Item 3.    | Quantitative and Qualitative Disclosures about Market Risk  | 19
|Item 4.    | Controls and Procedures                                     | 19
|PART II    | OTHER INFORMATION                                          
|Item 1.    | Legal Proceedings                                           | 20
|Item 1A.   | Risk Factors                                                | 20
|Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds | 20
|Item 3.    | Defaults upon Senior Securities                             | 20
|Item 4.    | Submission of Matters to a Vote of Security Holders         | 20
|Item 5.    | Other Information                                           | 20
|Item 6.    | Exhibits                                                    | 21
|SIGNATURES |                                                             | 22

3

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# Item 1.      FINANCIAL
STATEMENTS

# CurrencySharesSM
Euro Trust

# Statement of Financial
Condition

# (Unaudited)

|Assets                                                        | January 31, 2006
(Restated) | December 5, 2005
[Date of Inception]
|------------------------------------------------------------- | --------------------------- | ------------------------------------
|Current Assets                                                |                             |                                     
|Euro deposits, interest bearing                               |                             |                                     
|Euro deposits, non-interest bearing                           |                             |                                     
|Receivable from accrued interest                              |                             |                                     
|                                                              |                             |                                     
|Total Assets                                                  |                             |                                     
|                                                              |                             |                                     
|Liabilities and Shareholders Equity                          |                             |                                     
|Current Liabilities                                           |                             |                                     
|Accrued Sponsors fee                                         |                             |                                     
|                                                              |                             |                                     
|Total Liabilities                                             |                             |                                     
|Commitments and Contingent Liabilities (note 8)               |                             |                                     
|Redeemable Capital Shares, at redemption value, no par value, |                             |                                     
|8,500,000 authorized - 850,000 issued and outstanding         |                             |                                     
|Shareholders Equity - Retained Earnings and Cumulative       |                             |                                     
|Translation Adjustment                                        |                             |                                     
|                                                              |                             |                                     
|Total Liabilities and Shareholders Equity                    |                             |                                     
|                                                              |                             |                                     

See Notes to
Financial Statements.

4

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# CurrencySharesSM
Euro Trust

# Statement of Income
and Comprehensive Income

# (Unaudited)

|Income                              | December 5, 2005
[Date of Inception]
to January 31, 2006
(Restated)
|----------------------------------- | -------------------------------------------------------------------
|Interest Income                     |                                                                    
|                                    |                                                                    
|Total Income                        |                                                                    
|Expenses                            |                                                                    
|Sponsors fee                       |                                                                    
|                                    |                                                                    
|Total Expenses                      |                                                                    
|Net Income                          |                                                                    
|                                    |                                                                    
|Other Comprehensive Income          |                                                                    
|Currency translation adjustment     |                                                                    
|                                    |                                                                    
|Total Comprehensive Income          |                                                                    
|                                    |                                                                    
|Earnings per share                  |                                                                    
|Weighted-average Shares Outstanding |                                                                    
|Cash Dividends per Share            |                                                                    

See Notes to
Financial Statements.

5

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# CurrencySharesSM
Euro Trust

# Statement of Changes
in Shareholders Equity

# (Unaudited)

|                                                            | December 5, 2005
[Date of Inception]
to
January 31, 2006
(Restated)
|----------------------------------------------------------- | -------------------------------------------------------------------
|Retained Earnings Balance, Beginning of Period              |                                                                    
|Net Income                                                  |                                                                    
|Dividends from Net Investment Income                        |                                                                    
|Adjustment of redeemable capital shares to redemption value |                                                                    
|                                                            |                                                                    
|Retained Earnings Balance, End of Period                    |                                                                    
|                                                            |                                                                    
|Cumulative Translation Adjustment, Beginning of Period      |                                                                    
|Currency translation adjustment                             |                                                                    
|Adjustment of redeemable capital shares to redemption value |                                                                    
|                                                            |                                                                    
|Cumulative Translation Adjustment, End of Period            |                                                                    
|                                                            |                                                                    

See Notes to
Financial Statements.

6

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# CurrencySharesSM
Euro Trust

# Statement of Cash Flows

# (Unaudited)

|                                                                                 | January 31, 2006
(Restated)
|-------------------------------------------------------------------------------- | ---------------------------
|Cash flows from operating activities                                             |                            
|Cash received for interest income                                                |                            
|Cash paid for expenses                                                           |                            
|                                                                                 |                            
|Net cash provided by operating activities                                        |                            
|Cash flows from financing activities                                             |                            
|Cash received on issuance of redeemable shares                                   |                            
|Cash paid to redeem redeemable shares                                            |                            
|Cash paid for distributions                                                      |                            
|                                                                                 |                            
|Net cash provided by financing activities                                        |                            
|Increase in cash                                                                 |                            
|Cash at beginning of period                                                      |                            
|                                                                                 |                            
|Cash at end of period                                                            |                            
|                                                                                 |                            
|Reconciliation of net income to net cash provided by operating activities        |                            
|Net income                                                                       |                            
|Adjustments to reconcile net income to net cash provided by operating activities |                            
|Increase in receivable from accrued interest                                     |                            
|Currency translation adjustment                                                  |                            
|Increase in accrued sponsor fee                                                  |                            
|                                                                                 |                            
|Net cash provided by operating activities                                        |                            

See Notes to
Financial Statements.

7

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# Notes to Financial
Statement

# 1. Organization and
Description of the Trust

CurrencySharesSM Euro
Trust (the Trust) was formed under the laws of the state of New York on
December 5, 2005 when Rydex Specialized Products LLC d/b/a Rydex Investments
(the Sponsor) deposited 100 euro in the Trusts primary deposit account
held by JPMorgan Chase Bank N.A., London Branch (the Depository). The Sponsor
is a Delaware limited liability company whose sole member is PADCO Advisors II, Inc. (also
d/b/a/ Rydex Investments). The Sponsor is responsible for, among other things,
overseeing the performance of The Bank of New York (the Trustee) and the
Trusts principal service providers, including the preparation of financial
statements. The Trustee is responsible for the day-to-day administration of the Trust.

The investment objective of the Trust
is for the Trusts shares (the Shares) to reflect the price of euro. The
Trusts assets consist only of euro on demand deposit in two deposit accounts
maintained by the Depository: a primary deposit account which earns interest and a
secondary deposit account which does not earn interest. The secondary deposit account is
used only in connection with mid-month creations and redemptions of blocks of 50,000
Shares (Baskets), to account for interest that has been earned on the primary
deposit account during the month but not yet paid and to receive interest earned on the
primary deposit account, pay Trust expenses and distribute any excess interest to
shareholders on a monthly basis. The Shares are intended to provide investors with a
simple, cost-effective means of gaining investment benefits similar to those of holding
euro. The accompanying unaudited financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America
(GAAP) for interim financial information and with the instructions for Form
10-Q. The balance sheet as of December 5, 2005 is derived from audited financial
statements. In the opinion of management, all material adjustments, consisting only of
normal recurring adjustments, considered necessary for a fair statement of the interim
period financial statements have been made. Interim period results are not necessarily
indicative of results for a full-year period. These financial statements and the notes
thereto should be read in conjunction with the Trusts financial statements included
in the registration statement on Form S-1 as filed on December 6, 2005.

# 2. Significant
Accounting Policies

# A. Euro Deposits

Euro Deposits consists of a
euro-denominated, interest-bearing demand account and a euro-denominated,
non-interest-bearing account.

|                                                      
|------------------------------------------------------
|Balance at the opening of business on December 5, 2005
|Currency value of Shares redeemed                     
|Currency value of Shares issued                       
|                                                      
|Balance at close of business on January 31, 2006      
|                                                      

8

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# B. Use of Estimates

The preparation of financial
statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of the assets and liabilities and disclosures of
contingent liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the period. Actual results could differ from those estimates.

# C. Foreign Currency
Translation

The Trustee calculates the
Trusts net asset value (NAV) each business day, as described in Note 4.
For NAV calculation purposes, Euro Deposits (cash) are translated at the Noon Buying Rate,
which is the U.S. dollar (USD)/euro exchange rate as determined and published
by the Federal Reserve Bank of New York as of 12:00 PM (New York time) on each day that
the New York Stock Exchange (NYSE) is open for regular trading.

The functional currency of the Trust
is the euro in accordance with Financial Accounting Standard (FAS) 52, Foreign
Currency Translation. For financial statement reporting purposes, the USD is the reporting
currency. As a result, the financial statements are translated from euro to USD. Any
currency translation adjustment is included in comprehensive income.

# D. Federal Income Taxes

The Trust is treated as a
grantor trust for federal income tax purposes and, therefore, no provision for
federal income taxes is required. Interest, gains and losses are passed
through to the holders of Shares of the Trust.

Shareholders generally will be
treated, for U.S. federal income tax purposes, as if they directly owned a pro-rata share
of the assets held in the Trust. Shareholders also will be treated as if they directly
received their respective pro-rata shares of the Trusts income, if any, and as if
they directly incurred their respective pro-rata shares of the Trusts expenses. In
the case of a U.S. Shareholder that acquires Shares as part of a creation of a Basket, the
delivery of euro to the Trust in exchange for the Shares will not be a taxable event to
the Shareholder. With respect to the increase in the amount of the U.S. Shareholders
share of the euro held in the Trust that results from such a delivery, the
Shareholders aggregate tax basis (as determined immediately after such delivery) in
those euro that are held in the Trust and that are attributable to such increase, and the
Shareholders aggregate tax basis in the Shares received upon such delivery, will
each be the same as the Shareholders aggregate tax basis (as determined immediately
prior to such delivery) in the euro that are delivered by the Shareholder to the Trust.

Any Shares that are received by a
U.S. Shareholder to evidence the Shareholders pro-rata share of any interest
earnings of the Trust generally will have a tax basis equal to the USD-equivalent of the
amount of the Shareholders pro-rata share of the interest earnings.

The Sponsors fee accrues daily
and is payable monthly. For U.S. federal income tax purposes, an accrual-basis U.S.
Shareholder generally will be required to take into account as an expense its allocable
share of the USD-equivalent of the amount of the Sponsors fee that is accrued on
each day, with such USD-equivalent being determined by the currency exchange rate that is
in effect on the respective day. To the extent that the currency exchange rate on the date
of payment of the accrued amount of the Sponsors fee differs from the currency
exchange rate in effect on the day of accrual, the U.S. Shareholder will recognize a
currency gain or loss for U.S. federal income tax purposes.

9

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Redemption of some or all of a U.S.
Shareholders Shares in exchange for the underlying euro represented by the Shares
redeemed generally will not be a taxable event to the Shareholder. The Shareholders
tax basis for the euro received in the redemption generally will be the same as the
Shareholders tax basis for the portion of its pro rata share of the euro held in the
Trust immediately prior to the redemption that is attributable to the Shares redeemed. In
determining the portion of the U.S. Shareholders total tax basis in the euro held in
the Trust that is attributable to the Shares redeemed, the U.S. Shareholder generally will
be required to use the method, if any, that it has used previously to determine the tax
basis of nonfunctional currency amounts withdrawn from accounts with a bank or other
financial institution. A subsequent sale of the euro received by the Shareholder will be a
taxable event.

In the case of a U.S. Shareholder
that uses the USD as its functional currency, any gain or loss recognized by such U.S.
Shareholder upon the sale of Shares, or upon the sale of euro by the Trust, generally will
be treated under Internal Revenue Code section 988 as ordinary income or loss for U.S.
federal income tax purposes. The share of any interest income earned by the Trust that is
allocable to a U.S. Shareholder will be treated as ordinary income for U.S. federal income
tax purposes.

The Trust does not expect to generate
taxable income except for gain (if any) upon the sale of euro and interest income. A
non-U.S. Shareholder generally will not be subject to U.S. federal income tax with respect
to gain recognized upon the sale or other disposition of Shares, or upon the sale of euro
by the Trust, unless: (1) the non-U.S. Shareholder is an individual and is present in the
United States for 183 days or more during the taxable year of the sale or other
disposition, and the gain is treated as being from United States sources; or (2) the gain
is effectively connected with the conduct by the non-U.S. Shareholder of a trade or
business in the United States.

A non-U.S. Shareholders share
of any interest income earned by the Trust generally will not be subject to U.S. federal
income tax unless the Shares owned by such non-U.S. Shareholder are effectively connected
with the conduct by the non-U.S. Shareholder of a trade or business in the United States.

# E. Revenue Recognition

Interest on the primary deposit
account accrues daily as earned and is received on a monthly basis.

# F. Dividends

To the extent that the interest earned
by the Trust exceeds the Trusts expenses, dividends will be paid monthly.

10

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# 3. Restatement of
Interim Financial Statements

The Sponsor restated the interim
financial statements previously filed with the Trusts unaudited Quarterly Report on
Form 10-Q for the quarterly period ended January 31, 2006. The restated financial
statements correct an error in accounting for the portion of euro received by the Trust in
Basket creations and paid by the Trust in Basket redemptions that related to accrued
interest. Such interest receipts or payments were incorrectly included in the calculation
of interest receivable and interest income of the Trust, rather than cash and redeemable
capital shares. Additionally, the translation of these receipts or payments to USD
resulted in adjustments to the corresponding Currency Translation Adjustment balances.

The restatement has the following
impact on the financial statements for the Trusts quarterly period ended January 31,
2006:

# Statements of Financial
Condition.

|                                              | January 31, 2006
|--------------------------------------------- | ----------------
|
|Euro deposits, non-interest bearing           |                 
|Receivable for redeemable capital shares sold |                 

# Statements of Income and
Comprehensive Income.

|                                | Inception to Date
January 31, 2006
|------------------------------- | ----------------------------------
|
|Interest Income                 |                                   
|Net Income                      |                                   
|Currency Translation Adjustment |                                   
|Total Comprehensive Income      |                                   
|Earnings Per Share              |                                   

11

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# Statements of Changes in Shareholders
Equity.

|                                           | Inception to Date
January 31, 2006
|------------------------------------------ | ----------------------------------
|
|Net Income                                 |                                   
|Adjustment of redeemable capital shares to |                                   
|redemption value                           |                                   
|Currency Translation Adjustment            |                                   
|Adjustment of redeemable capital shares to |                                   
|redemption value                           |                                   

# Statement of Cash Flows.

|                                               | Inception to Date
January 31, 2006
|---------------------------------------------- | ----------------------------------
|
|Cash received for interest income              |                                   
|Net cash provided by operating activities      |                                   
|Cash received on issuance of redeemable shares |                                   
|Net cash provided by financing activities      |                                   
|Increase in cash                               |                                   
|Cash at end of period                          |                                   
|Net Income                                     |                                   
|Increase in receivable for redeemable          |                                   
|capital shares sold                            |                                   
|Currency translation adjustment                |                                   

12

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# 4. Redeemable Capital
Shares

Shares are classified as
redeemable for financial statement purposes, since they are subject to
redemption. Shares are issued and redeemed continuously in Baskets of 50,000 Shares in
exchange for euro. Individual investors cannot purchase or redeem Shares in direct
transactions with the Trust. Authorized Participants, as defined below, are the only
persons that may place orders to create and redeem Baskets. An Authorized Participant is a
Depository Trust Company (DTC) participant that is a registered broker-dealer
or other institution eligible to settle securities transactions though the book-entry
facilities of DTC and which has entered into a contractual arrangement with the Trust and
the Sponsor governing, among other matters, the creation and redemption process.
Authorized Participants may redeem their Shares at any time in the prescribed aggregations
of 50,000 Share Baskets.

Due to expected continuing sales and
redemption of capital stock and the three-day period for settlement of the Shares, the
Trust reflects Shares sold as a receivable. Shares redeemed are reflected as a liability
on the trade date. Outstanding Shares are reflected at a redemption value, which is the
NAV per Share at the period end date. Adjustments to redeemable capital shares at
redemption value are recorded against retained earnings, or in the absence of retained
earnings, by charges against the cumulative translation adjustment.

Activity in redeemable capital Shares
is as follows:

|                                                      
|------------------------------------------------------
|Balance at the opening of business on December 5, 2005
|Shared redeemed                                       
|Shares issued                                         
|Adjustment to redemption value                        
|                                                      
|Balance at close of business on January 31, 2006      
|                                                      

The Trustee calculates the
Trusts NAV each business day. To calculate the NAV, the Trustee subtracts the
Sponsors accrued fee through the previous day from the euro held by the Trust
(including all unpaid interest accrued through the preceding day) and calculates the value
of the euro in USD based upon the Noon Buying Rate. If, on a particular evaluation day,
the Noon Buying Rate has not been determined and announced by 2:00 PM (New York time),
then the most recent Federal Reserve Bank of New York determination of the Noon Buying
Rate shall be used to determine the NAV of the Trust unless the Trustee, in consultation
with the Sponsor, determines that such price is inappropriate to use as the basis for such
valuation. In the event that the Trustee and the Sponsor determine that the most recent
Federal Reserve Bank of New York determination of the Noon Buying Rate is not an
appropriate basis for valuation of the Trusts euro, they shall determine an
alternative basis for such evaluation to be employed by the Trustee. The Trustee also
determines the NAV per Share, which equals the NAV of the Trust divided by the number of
outstanding Shares. Shares deliverable under a purchase order are considered outstanding
for purposes of determining NAV per Share; Shares deliverable under a redemption order are
not considered outstanding for this purpose.

13

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# 5. Sponsors Fee

The Sponsors fee accrues daily
at an annual nominal rate of 0.40% of the euro in the Trust (including all unpaid interest
but excluding unpaid fees, each as accrued through the immediately preceding day) and is
paid monthly.

The Sponsor assumes and pays the
following administrative and marketing expenses incurred by the Trust: the Trustees
monthly fee, NYSE listing fees, SEC registration fees, typical maintenance and transaction
fees of the Depository, printing and mailing costs, audit fees and expenses, up to
$100,000 per year in legal fees and expenses, and applicable license fees. The Sponsor
also paid the costs of the Trusts organization and the initial sales of the Shares,
which were approximately $1,000,000 when the Trust was formed.

In certain exceptional cases the
Trust will pay for some expenses in addition to the Sponsors fee. These exceptions
include expenses not assumed by the Sponsor (i.e., expenses identified in the preceding
paragraph), taxes and governmental charges, expenses and costs of any extraordinary
services performed by the Trustee or the Sponsor on behalf of the Trust or action taken by
the Trustee or the Sponsor to protect the Trust or the interests of Shareholders,
indemnification of the Sponsor under the Depositary Trust Agreement, and legal expenses in
excess of $100,000 per year.

# 6. Related Parties

The Sponsor is a related party of the
Trust. The Sponsor oversees the performance of the Trustee and the Trusts principal
service providers, including the preparation of financial statements, but does not
exercise day-to-day oversight over the Trustee or the Trusts service providers. The
Sponsor paid the costs of the Trusts organization and the initial sales of the
Shares, as described in Note 5.

# 7. Concentration Risk

All of the Trusts assets are
euro, which creates a concentration risk associated with fluctuations in the price of
euro. Accordingly, a decline in the price of euro will have an adverse effect on the value
of the Shares of the Trust. Factors that may have the effect of causing a decline in the
price of euro include national debt levels and trade deficits, domestic and foreign
inflation rates, domestic and foreign interest rates, investment and trading activities of
institutions and global or regional political, economic or financial events and
situations. Substantial sales of euro by the official sector (central banks, other
governmental agencies and related institutions that buy, sell and hold euro as part of
their reserve assets) could adversely affect an investment in the Shares.

# 8. Commitments and
Contingencies

Under the Trusts organizational
documents, the Sponsor is indemnified against any liability or expense it incurs without
negligence, bad faith or willful misconduct on its part. The Trusts maximum exposure
under these arrangements is unknown, as this would involve future claims that may be made
against the Trust that have not yet occurred.

14

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# Item 2.  MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

# Cautionary Statement
Regarding Forward-Looking Information and Risk Factors

This report contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are predictions and actual events or results may differ materially from
those expressed in our forward-looking statements. Risks and uncertainties may cause our
actual results to differ materially from those expressed in our forward-looking
statements. These uncertainties and other factors include, but are not limited to, the
following:

The value of the Shares relates
directly to the value of the euro held by the Trust and fluctuations in the price of euro
could materially adversely affect an investment in the Shares. Readers are urged to review
the Risk Factors section contained in the Prospectus for a description of
other risks and uncertainties that may affect an investment in the Shares.

The discussion and analysis which
follows may contain statement that relate to future events or future performance. In some
cases, such forward-looking statements can be identified by terminology such as
anticipate, expect, intend, plan,
believe, seek, outlook and estimate as
well as similar words and phrases that signify forward-looking statements. Neither the
Sponsor, nor any other person assumes responsibility for the accuracy or completeness of
forward-looking statements to conform such statements to actual results or to a change in
the Sponsors expectations or predictions.

# Trust Overview

Euro Currency Trust is a grantor
trust that was formed on December 5, 2005. The Trust issues Baskets of Shares in exchange
for deposits of euro and distributes euro in connection with the redemption of Baskets.

The Trust is a passive investment
vehicle. The Trust does not have any officers, directors, or employees. The investment
objective of the Trust is for the Shares to reflect the price of euro plus accrued
interest, less the expenses of the Trusts operations. The Trust does not engage in
any activities designed to obtain profit from, or ameliorate losses caused by, changes in
the price of euro.

The Shares of the Trust began trading
on the NYSE under the ticker symbol FXE on December 12, 2005. Investing in the
Shares does not insulate the investor from certain risks, including price volatility.

# Definition of Net Asset
Value, Valuation of Euro

The NAV of the Trust is the aggregate
value, expressed in U.S. dollars, of the Trusts assets. To calculate the NAV, the
Trustee adds to the amount of euro in the Trust at the end of the preceding business day
accrued but unpaid interest, euro receivable under pending purchase orders and the value
of other Trust assets, and subtracts the accrued but unpaid Sponsors fee, euro
payable under pending redemption orders and other Trust expenses and liabilities, if any.

15

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The NAV is expressed in USD based on
the Noon Buying Rate as determined by the Federal Reserve Bank of New York. If, on a
particular evaluation day, the Noon Buying Rate has not been determined and announced by
2:00 PM (New York time), then the most recent Federal Reserve Bank of New York
determination of the Noon Buying Rate shall be used to determine the NAV of the Trust
unless the Trustee, in consultation with the Sponsor, determines that such price is
inappropriate to use as the basis for such valuation. The Trustee also determines the NAV
per Share, which equals the NAV of the Trust divided by the number of outstanding Shares.

The Sponsor publishes the NAV and NAV
per Share on each day that the NYSE is open for regular trading on the Trusts
website, www.currencyshares.com.

The following chart illustrates the
movement in the price of the Shares based on NAV per Share and the bid and
ask midpoint offered on the NYSE as of the Noon Buying Rate versus the
corresponding euro (expressed as a multiple of 100 euro  Noon Buying Rate x 100):



# Liquidity

The Sponsor is not aware of any
trends, demands, conditions or events that are reasonable likely to result in material
changes to the Trusts liquidity needs. The Depository maintains two deposit accounts
for the Trust, a primary deposit account that earns interest and a secondary deposit
account that does not earn interest. Interest on the primary deposit account accrues daily
at an initial annual nominal rate of EONIA minus 27 basis points and is paid monthly. The
following chart provides the daily rate paid by the Depository since the Trusts
Shares began trading on the NYSE:

16

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In exchange for a fee the Sponsor has
agreed to assume most of the expense incurred by the Trust. As a result, the only ordinary
expense of the Trust during the period covered by this report was the Sponsors fee.
Each month the Depository deposits into the secondary deposit account accrued but unpaid
interest and the Trustee withdraws euro from the secondary deposit account to pay the
accrued Sponsors fee for the previous month plus any other Trust expenses. In the
event that the interest deposited exceeds the sum of the Sponsors fee for the prior
month plus other Trust expenses, if any, then the Trustee will convert the excess into USD
at a prevailing market rate and distribute the USD as promptly as practicable to
Shareholders on a pro rata basis (in accordance with the number of Shares that they own).
Historical distributions are as follows:

|          
|----------
|
|
|12/30/2006
|1/31/2006 
|          
|          
|          

# Critical Accounting
Estimates

The preparation of financial
statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the
reported amounts of the assets and liabilities and disclosures of contingent liabilities
at the date of the financial statements and the reported amounts of revenue and expenses
during the period.

In addition to the description below
and for further descriptions, please refer to Note 2 to the consolidated financial
statements for further discussion of our accounting policies.

17

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The Trustee calculates the
Trusts NAV each business day. For NAV calculation purposes, Euro Deposits (cash) are
translated at the Noon Buying Rate, which is the U.S. dollar (USD)/euro
exchange rate as determined and published by the Federal Reserve Bank of New York as of
12:00 PM (New York time) on each day that the NYSE is open for regular trading.

The functional currency of the Trust
is the euro in accordance with Financial Accounting Standard (FAS) 52, Foreign
Currency Translation.

# Results of Operations

On December 5, 2005, the date of
formation of the Trust, the Depository received 15,000,000 euro on behalf of the Trust in
exchange for 150,000 Shares. Trading in the Shares of the Trust on the NYSE commenced on
December 12, 2005. Through January 31, 2006 an additional 700,000 Shares were created in
exchange for 70,000,000 euro, and the seed capital of 100 euro was redeemed.

As of January 31, 2006 the amount of
euro owned by the Trust was 85,000,000 resulting in a value of $103,343,000, based on Noon
Buying Rate on January 31, 2006.

# Movements in the Price
of Euro

The investment objective of the Trust
is for the Shares to reflect the price of the euro. The Shares are intended to provide
institutional and retail investors with a simple, cost-effective means of gaining
investment benefits similar to those of holding euro. Each outstanding Share will
represent a proportional interest in the euro held by the Trust. The following chart
provides recent trends on the price of euro. The chart illustrates movements in the price
of euro in US dollars per euro over the period from February 1, 2005 to January 31, 2006,
and is based on the Noon Buying Rate as determined by the Federal Reserve Bank of New
York:



Historical values of the Noon Buying
can be obtained at http://www.ny.frb.org/markets/fxrates/noon.cfm.

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# Item 3.      QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

# Item 4.      CONTROLS AND
PROCEDURES

The Sponsor maintains disclosure
controls and procedures on behalf of the Trust. The term disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15a-15(e) under the Securities
Exchange Act of 1934) means controls and other procedures that are designed to ensure that
information required to be disclosed in the reports that the Trust files or submits to the
SEC under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the SECs rules and forms. The Trusts disclosure controls
and procedures are designed by or under the supervision of the Sponsors chief
executive officer and chief financial officer who exercise oversight over the Trust, as
the Trust has no officers. The chief executive officer and chief financial officer of the
Sponsor have evaluated the effectiveness of the Trusts disclosure controls and
procedures as of January 31, 2006. Based on that evaluation, the chief executive officer
and chief financial officer of the Sponsor have concluded that the disclosure controls and
procedures of the Trust were not effective as a result of the material weakness discussed
below as of January 31, 2006.

A material weakness is a control
deficiency, or a combination of control deficiencies, that results in more than a remote
likelihood that a material misstatement of the annual or interim financials will not be
prevented or detected.

As of January 31, 2006, the Trust did
not maintain effective control over the accuracy of its interest income. Specifically, the
Trust did not maintain effective control to ensure that the foreign currency received by
the Trust in Basket creations and paid by the Trust in Basket redemptions was included in
the calculation of income of the Trust, rather than in capital in accordance with
accounting principles generally accepted in the United States of America and that the
calculation was reviewed appropriately by the Sponsor. This control deficiency resulted in
the restatement of the Trusts fiscal 2006 condensed financial statements for all
interim periods and audit adjustments to the financial statements prepared by the Sponsor
for the fiscal year ending October 31, 2006. Additionally, this control deficiency could
result in a misstatement of interest income and accrued interest that would, in turn,
result in a material misstatement of annual or interim financial statements that would not
be prevented or detected. Accordingly, the Sponsors management has determined that
this control deficiency constitutes a material weakness.

# Remediation Plan

The Sponsor has worked with and will
continue to work with the Trustee, which provides financial statement information for the
Trust, to remedy the issue. The Trustee has advised the Sponsor that it has implemented
procedures and controls to better assure that these payments will be accounted for
properly in the current year and all future financial statements of the Trust. In
addition, the Sponsor has enhanced procedures and controls in connection with the review
of all financial statement information provided by the Trustee to better assure that this
type of error, or others like it, is detected in future financial statements.

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# PART II  OTHER
INFORMATION

# Item 1.    Legal Proceedings

None.

# Item 1A.    Risk Factors

There have been no material changes
from the risk factors disclosed in the Risk Factors section of the
Trusts Annual Report on Form 10-K filed with the Securities and Exchange Commission
on January 29, 2007.

# Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds

(a)           On December 5, 2005,
the Sponsor deposited 100 euro in the Trusts primary           deposit account in
exchange for one Share solely for purposes of forming the           Trust and preparing
audited financial statements in the Registration Statement.           As described in
Item 2(c) below, the Sponsor redeemed the Share for 100 euro           immediately after
the Registration Statement was declared effective.

(b)           Not applicable.

(c)           On December 8, 2005,
the Trusts Registration Statement was declared           effective and the Sponsor
redeemed for 100 euro the Share it received when it           deposited 100 euro in the
primary deposit account to form the Trust. No other           Shares have been redeemed
through January 31, 2006.

# Item 3.    Defaults upon
Senior Securities

None.

# Item 4.    Submission of
Matters to a Vote of Security Holders

None.

# Item 5.    Other Information

None.

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# Item 6.    Exhibits

| | Number | Description
of Exhibit
| | ------ | ----------------------

| | 31.1 | Certification
of Principal Executive Officer Pursuant to Section 302 of the
                                Sarbanes-Oxley Act of 2002
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certification
of Principal Financial Officer Pursuant to Section 302 of the
                                Sarbanes-Oxley Act of 2002
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| | 32.1 | Certification
of Principal Executive Officer Pursuant to Section 906 of the
                                Sarbanes-Oxley Act of 2002
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| | 32.2 | Certification
of Principal Financial Officer Pursuant to Section 906 of the
                                Sarbanes-Oxley Act of 2002
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

---

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# SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.

|                         | RYDEX SPECIALIZED PRODUCTS LLC
|------------------------ | ------------------------------
|                         | D/B/A RYDEX INVESTMENTS,      
|                         | SPONSOR OF CURRENCYSHARESSM   
|                         | EURO TRUST                    
|Date:  February 28, 2007 | By:  /s/ Nick Bonos           
|                         | Nick Bonos                    
|                         | Chief Financial Officer       
|                         | (principal financial officer) 

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