---

# UNITED
STATESSECURITIES 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 July 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 July 31, 2006, filed on September 14, 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.

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# CURRENCYSHARESSM
EURO TRUST Index

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

|Statements of Financial Condition at July 31, 2006 and December 5, 2005 (Date of Inception) (unaudited)  | 3
|-------------------------------------------------------------------------------------------------------- | -
|Statements of Income and Comprehensive Income for the three months ended July 31, 2006 (unaudited and    | 4
|restated) and the period from December 5, 2005 (Date of Inception) to July 31, 2006 (unaudited and      
|restated)                                                                                               
|Statement of Changes in Shareholders' Equity for the period from December 5, 2005 (Date of Inception) to | 5
|July 31, 2006 (unaudited and restated)                                                                  
|Statement of Cash Flows for the period from December 5, 2005 (Date of Inception) to July 31, 2006        | 6
|(unaudited and restated)                                                                                
|Notes to Financial Statements (unaudited)                                                                | 7

|           |                                                                                        |   
|---------- | -------------------------------------------------------------------------------------- | --
|Item 2.    | Managements Discussion and Analysis of Financial Condition and Results of Operations. | 14
|Item 3.    | Quantitative and Qualitative Disclosures about Market Risk                             | 18
|Item 4.    | Controls and Procedures                                                                | 18
|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

2

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# Item 1.      FINANCIAL
STATEMENTS

# CurrencySharesSM
Euro Trust

# Statements of
Financial Condition

# (Unaudited)

|                                                              | July 31, 2006 | December 5, 2005 [Date
of Inception]
|------------------------------------------------------------- | ------------- | ------------------------------------
|Assets                                                        |               |                                     
|Current Assets                                                |               |                                     
|Euro deposits, 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, |               |                                     
|17,000,000 authorized - 5,050,000 issued and outstanding      |               |                                     
|Shareholders Equity - Retained Earnings and Cumulative       |               |                                     
|Translation Adjustment                                        |               |                                     
|                                                              |               |                                     
|Total Liabilities and Shareholders Equity                    |               |                                     
|                                                              |               |                                     

See Notes to
Financial Statements.

3

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# CurrencySharesSM
Euro Trust

# Statements of Income
and Comprehensive Income

# (Unaudited)

|Income                              | Three months ended
July 31, 2006
(Restated) | December 5, 2005 [Date
of Inception]
to July 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.

4

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# CurrencySharesSM
Euro Trust

# Statement of Changes
in Shareholders Equity

# (Unaudited)

|                                                            | December 5, 2005
[Date of Inception]
to July 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.

5

---

# CurrencySharesSM
Euro Trust

# Statement of Cash Flows

# (Unaudited)

|                                                                          | December 5, 2005
[Date of Inception]
to July 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                                               |                                                                 
|Adjustment to period cash flows due to currency movement                  |                                                                 
|                                                                          |                                                                 
|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.

6

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# NOTES TO FINANCIAL
STATEMENTS (unaudited)

# 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 the euro.
The Shares are intended to provide investors with a simple, cost-effective means of
gaining investment benefits similar to those of holding euro. The Trusts assets
primarily consist 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).
The secondary account is used 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
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.

7

---

# 2. Significant
Accounting Policies

# A. Euro Deposits

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

|                                       | Three months ended
July 31, 2006 | Period from December 5, 2005
[Date of Inception]
to July 31, 2006
|-------------------------------------- | -------------------------------- | -----------------------------------------------------------------
|Euro
Amount                            | US Dollar Amount                 | Euro
Amount                                                      
|Opening balance                        |                                  |                                                                  
|Currency value of euro redeemed        |                                  |                                                                  
|Currency value of euro deposited       |                                  |                                                                  
|Adjustment to period cash flows due to |                                  |                                                                  
|currency movement                      |                                  |                                                                  
|                                       |                                  |                                                                  
|Ending Balance                         |                                  |                                                                  
|                                       |                                  |                                                                  

# 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, 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. The Noon
Buying Rate on the last day of the period is used for translation in the statements of
financial condition. The average Noon Buying Rate for the period is used for translation
in the statements of income and comprehensive income and the statement of cash flows. Any
currency translation adjustment is included in comprehensive income.

8

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# 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 (Shareholders) 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. The
acquisition of Shares by a U.S. Shareholder as part of a creation of a Basket will not be
a taxable event to the Shareholder.

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.

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 sum of the Sponsors fee for the prior month plus other
Trust expenses, if any, the Trust will distribute, as a dividend, the excess interest
earned in euro effective on the first business day of the subsequent month. The Trustee
will direct that the excess euro be converted into USD at a prevailing market rate and the
Trustee will distribute the USD as promptly as practicable to Shareholders on pro rata
basis (in accordance with the number of Shares that they own).

9

---

# 3. Restatement of
Interim Financial Statements (unaudited)

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 July 31, 2006. The restated financial statements
correct an accounting error for the euros 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 July 31,
2006:

# Statements of Income and
Comprehensive Income.

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

|                                | Three months ended
July 31, 2006
|------------------------------- | --------------------------------
|
|Interest Income                 |                                 
|Net Income                      |                                 
|Currency Translation Adjustment |                                 
|Total Comprehensive Income      |                                 
|Earnings Per Share              |                                 

10

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# Statements of Changes in Shareholders
Equity.

|                                           | Inception to Date
July 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
July 31, 2006
|---------------------------------------------- | -------------------------------
|
|Cash received for interest income              |                                
|Net cash provided by operating activities      |                                
|Cash received on issuance of redeemable shares |                                
|Cash paid to redeem redeemable shares          |                                
|Net cash provided by financing activities      |                                
|Net Income                                     |                                

# 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. Only Authorized Participants (as defined below) 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
the 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.

11

---

Due to expected continuing creations
and redemptions of Baskets and the three-day period for settlement of each creation or
redemption, the Trust reflects Shares created 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:

|                                            | Three months ended
July 31, 2006 (Restated) | Period from December 5, 2005
[Date of Inception]
to July 31, 2006 (Restated)
|------------------------------------------- | ------------------------------------------- | ----------------------------------------------------------------------------
|Shares                                      | US Dollar Amount                            | Shares                                                                      
|Opening balance                             |                                             |                                                                             
|Shares redeemed                             |                                             |                                                                             
|Shares issued                               |                                             |                                                                             
|Adjustment to period Shares due to currency |                                             |                                                                             
|movement and other                          |                                             |                                                                             
|                                            |                                             |                                                                             
|Ending Redemption Balance                   |                                             |                                                                             
|                                            |                                             |                                                                             

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.

# 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.

12

---

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 other than those 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 to USD exchange rate 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.

13

---

# 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. Further, these forward-looking
statements are made as of the date of this report, and will not be revised or updated to
reflect actual results or changes in the Sponsors expectations or predictions.

# Trust Overview

Euro
Currency Trust (the Trust) is a grantor trust that was formed on December 5,
2005. The Trust issues shares (the Shares) in blocks of 50,000 each (a
Basket) 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 New York Stock Exchange (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
net asset value (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.

14

---

The
NAV is expressed in US Dollars (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 Trusts
Depository, JPMorgan Chase, London branch, 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 and is paid monthly.
The interest rate paid as of July 31, 2006 was an annual nominal rate of 2.51%. The
following chart provides the daily rate paid by the Depository since the Trusts
Shares began trading on the NYSE:

15

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In
exchange for a fee, the Sponsor 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 Bank of New York as Trustee
withdraws euro from the secondary deposit account to pay the accrued Sponsors fee
for the previous month plus any other Trust expenses. When interest deposited exceeds the
sum of the Sponsors fee for the prior month plus other Trust expenses, if any, the
Trustee converts the excess into USD at a prevailing market rate and distributes 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:

|      
|------
|
|
|1/3/06
|2/1/06
|3/1/06
|4/3/06
|5/1/06
|6/1/06
|7/3/06

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# Critical Accounting
Estimates

The
preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires the Sponsors 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.

The
Trustee calculates the Trusts NAV each business day. For NAV calculation purposes,
Euro Deposits (cash) are translated at the Noon Buying 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 52, Foreign Currency Translation.

# Results of Operations

The
Trust was formed on December 5, 2005, when the Sponsor deposited 100 euro with the
Depository in exchange for one Share. The Depository received 15,000,000 euro on behalf of
the Trust in exchange for 150,000 Shares on December 8, 2005. Trading in the Shares of the
Trust on the NYSE commenced on December 12, 2005. Through July 31, 2006 an additional
6,100,000 Shares had been created in exchange for 610,000,000 euro and 1,200,000 Shares
had been redeemed in exchange for 120,000,000 euro; additionally, the seed capital of 100
euro had been redeemed.

As
of July 31, 2006 the amount of euro owned by the Trust was 505,000,000 resulting in a
value of $ 645,776,200, based on the Net Asset Value on July 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 represents 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 USD per euro during the period from August 1, 2005 to
July 31, 2006, and is based on the Noon Buying Rate as determined by the Federal Reserve
Bank of New York:

17

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

# 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 July 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 July 31, 2006.

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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 July 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.
          The Sponsor redeemed the Share for 100 euro immediately after the Registration
          Statement was declared effective.

(b)              Not
applicable.

(c)              During
the quarter ended July 31, 2006, 24 Baskets (1,200,000 Shares registered
          pursuant to Section 12 of the Securities Exchange Act of 1934) were redeemed by
          the Trust, as follows:

|Period              | Total Number of Registered Shares Redeemed | Average Price Per Share
|------------------- | ------------------------------------------ | -----------------------
|05/01/06 - 05/31/06 | --                                         | --                     
|06/01/06 - 06/30/06 | 1,200,000                                  | $126.0878              
|07/01/06 - 07/31/06 | --                                         | --                     

# 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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