##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549





FORM 10-Q





x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2010

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





CurrencyShares® 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
incorporation or organization) |  | (IRS Employer
Identification No.)

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)

N/A

(Former name, former address and former fiscal year, if changed since last report)





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 has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

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

Large accelerated filer  x    Accelerated
filer   ̈    Non-accelerated filer   ̈    Smaller reporting
company   ̈

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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##### Table of Contents

CURRENCYSHARES® EURO TRUST

INDEX



|                                                                                                                                                                                                           |  |     
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Caption                                                                                                                                                                                                    |  | Page
|PART I FINANCIAL INFORMATION                                                                                                                                                                               |  |     
|                                                                                                                                                                                                           | 
|Item 1. Financial Statements (Unaudited)                                                                                                                                                                   |  |     
|                                                                                                                                                                                                           | 
|Statements of Financial Condition at July 31, 2010 and October 31, 2009                                                                                                                                    |  | 2   
|                                                                                                                                                                                                           | 
|Statements of Income and Comprehensive Income for the three months ended July 
31, 2010, the three months ended July 31, 2009, the nine months ended July 31, 2010 and the nine months ended July 31, 2009 |  | 3   
|                                                                                                                                                                                                           | 
|Statements of Changes in Shareholders Equity for the nine months ended July 
31, 2010 and the year ended October 31, 2009                                                                                 |  | 4   
|                                                                                                                                                                                                           | 
|Statements of Cash Flows for the nine months ended July 31, 2010 and the nine months ended July 
31, 2009                                                                                                  |  | 5   
|                                                                                                                                                                                                           | 
|Notes to Financial Statements                                                                                                                                                                              |  | 6   
|                                                                                                                                                                                                           | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations                                                                                                              |  | 10  
|                                                                                                                                                                                                           | 
|Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                         |  | 14  
|                                                                                                                                                                                                           | 
|Item 4. Controls and Procedures                                                                                                                                                                            |  | 14  
|                                                                                                                                                                                                           | 
|Part II OTHER INFORMATION                                                                                                                                                                                  |  |     
|                                                                                                                                                                                                           | 
|Item 1. Legal Proceedings                                                                                                                                                                                  |  | 15  
|                                                                                                                                                                                                           | 
|Item 1A. Risk Factors                                                                                                                                                                                      |  | 15  
|                                                                                                                                                                                                           | 
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                        |  | 15  
|                                                                                                                                                                                                           | 
|Item 3. Defaults Upon Senior Securities                                                                                                                                                                    |  | 15  
|                                                                                                                                                                                                           | 
|Item 4. (Removed and Reserved)                                                                                                                                                                             |  | 15  
|                                                                                                                                                                                                           | 
|Item 5. Other Information                                                                                                                                                                                  |  | 15  
|                                                                                                                                                                                                           | 
|Item 6. Exhibits                                                                                                                                                                                           |  | 16  
|                                                                                                                                                                                                           | 
|SIGNATURES                                                                                                                                                                                                 |  | 17  



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##### Table of Contents

PART I - FINANCIAL INFORMATION



|Item 1. | FINANCIAL STATEMENTS
|------- | --------------------

CurrencyShares® Euro Trust

Statements of Financial Condition



|                                                                                                                                                                                |  |                          |             |                  |   |            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------ | ----------- | ---------------- | - | -----------
|                                                                                                                                                                                |  | July 31,
2010(Unaudited) |             | October 31, 2009
|Assets                                                                                                                                                                          |  |                          |             |                  |   |            
|Current Assets:                                                                                                                                                                 |  |                          |             |                  |   |            
|Euro deposits, interest bearing                                                                                                                                                 |  | $                        | 506,455,556 |                  | $ | 589,687,376
|Euro deposits, non-interest bearing                                                                                                                                             |  |                          |            |                  |   |           
|Receivable from accrued interest                                                                                                                                                |  |                          | 82,676      |                  |   | 42,662     
|                                                                                                                                                                                |  |                          |             |                  |   |            
|Total Assets                                                                                                                                                                    |  | $                        | 506,538,232 |                  | $ | 589,730,038
|                                                                                                                                                                                |  |                          |             |                  |   |            
|                                                                                                                                                                                |  |                         
|Liabilities and Shareholders Equity                                                                                                                                            |  |                          |             |                  |   |            
|Current Liabilities:                                                                                                                                                            |  |                          |             |                  |   |            
|Redemptions payable                                                                                                                                                             |  | $                        | 38,952,401  |                  | $ | 14,738,573 
|Accrued Sponsors fee                                                                                                                                                           |  |                          | 153,619     |                  |   | 195,543    
|                                                                                                                                                                                |  |                          |             |                  |   |            
|Total Current Liabilities                                                                                                                                                       |  |                          | 39,106,020  |                  |   | 14,934,116 
|                                                                                                                                                                                |  |                         
|Commitments and Contingent Liabilities (note 8)                                                                                                                                 |  |                          |            |                  |   |           
|Redeemable Capital Shares, at redemption value, no par value, 52,000,000 and 32,000,000 authorized, respectively  3,600,000
and 3,900,000 issued and outstanding, respectively |  |                          | 467,432,212 |                  |   | 574,795,922
|Shareholders Equity:                                                                                                                                                           |  |                          |             |                  |   |            
|Retained Earnings                                                                                                                                                               |  |                          |            |                  |   |           
|Cumulative Translation Adjustment                                                                                                                                               |  |                          |            |                  |   |           
|                                                                                                                                                                                |  |                          |             |                  |   |            
|                                                                                                                                                                                |  |                         
|Total Liabilities and Shareholders Equity                                                                                                                                      |  | $                        | 506,538,232 |                  | $ | 589,730,038
|                                                                                                                                                                                |  |                          |             |                  |   |            

See Notes to Financial Statements.



2



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CurrencyShares® Euro Trust

Statements of Income and Comprehensive Income

(Unaudited)



|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|------------------------------------ |  | -------------------------------- | --------- | - | -------------------------------- | - | --------- | ------------------------------- |  | - | ------------------------------- | - |  | - | ---------- | -
|                                     |  | Three months 
endedJuly 31, 2010 |           |   | Three months 
endedJuly 31, 2009 |   |           | Nine months 
endedJuly 31, 2010 |  |   | Nine months 
endedJuly 31, 2009 |  
|Income                               |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|Interest Income                      |  | $                                | 150,146   |   |                                  | $ | 500,289   |                                 |  | $ | 389,164                         |   |  | $ | 4,733,702  |  
|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|Total Income                         |  |                                  | 150,146   |   |                                  |   | 500,289   |                                 |  |   | 389,164                         |   |  |   | 4,733,702  |  
|                                     |  |                                  |           |  
|Expenses                             |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|Sponsors fee                        |  |                                  | (528,334  | ) |                                  |   | (600,103  | )                               |  |   | (1,769,604                      | ) |  |   | (1,746,299 | )
|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|Total Expenses                       |  |                                  | (528,334  | ) |                                  |   | (600,103  | )                               |  |   | (1,769,604                      | ) |  |   | (1,746,299 | )
|                                     |  |                                  |           |  
|Net (Loss)/Income                    |  | $                                | (378,188  | ) |                                  | $ | (99,814   | )                               |  | $ | (1,380,440                      | ) |  | $ | 2,987,403  |  
|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|                                     |  |                                  |           |  
|Other Comprehensive (Loss)/Income:   |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|Currency translation adjustment      |  |                                  | (14,998   | ) |                                  |   | (1,857    | )                               |  |   | 17,414                          |   |  |   | (61,120    | )
|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|                                     |  |                                  |           |  
|Total Comprehensive (Loss)/Income    |  | $                                | (393,186  | ) |                                  | $ | (101,671  | )                               |  | $ | (1,363,026                      | ) |  | $ | 2,926,283  |  
|                                     |  |                                  |           |   |                                  |   |           |                                 |  |   |                                 |   |  |   |            |  
|                                     |  |                                  |           |  
|Basic and Diluted Earnings per Share |  | $                                | (0.09     | ) |                                  | $ | (0.02     | )                               |  | $ | (0.32                           | ) |  | $ | 0.68       |  
|Weighted-average Shares Outstanding  |  |                                  | 4,171,739 |   |                                  |   | 4,275,000 |                                 |  |   | 4,365,385                       |   |  |   | 4,402,381  |  
|Cash Dividends per Share             |  | $                                |          |   |                                  | $ | 0.04      |                                 |  | $ |                                |   |  | $ | 1.08       |  

See Notes to
Financial Statements.



3



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##### Table of Contents

CurrencyShares® Euro Trust

Statements of Changes in Shareholders Equity



|                                                            |  |                                            |            |   |                            |   |            |  
|----------------------------------------------------------- |  | ------------------------------------------ | ---------- | - | -------------------------- | - | ---------- | -
|                                                            |  | Nine months 
endedJuly 31, 2010(Unaudited) |            |   | Year endedOctober 31, 2009 |  
|Retained Earnings, Beginning of Period                      |  | $                                          |           |   |                            | $ |           |  
|Net (Loss)/Income                                           |  |                                            | (1,380,440 | ) |                            |   | 2,535,812  |  
|Distributions Paid                                          |  |                                            |           |   |                            |   | (4,922,939 | )
|Adjustment of redeemable capital shares to redemption value |  |                                            | 1,380,440  |   |                            |   | 2,387,127  |  
|                                                            |  |                                            |            |   |                            |   |            |  
|                                                            |  |                                           
|Retained Earnings, End of Period                            |  | $                                          |           |   |                            | $ |           |  
|                                                            |  |                                            |            |   |                            |   |            |  
|                                                            |  |                                           
|Cumulative Translation Adjustment, Beginning of Period      |  | $                                          |           |   |                            | $ |           |  
|Currency translation adjustment                             |  |                                            | 17,414     |   |                            |   | (67,545    | )
|Adjustment of redeemable capital shares to redemption value |  |                                            | (17,414    | ) |                            |   | 67,545     |  
|                                                            |  |                                            |            |   |                            |   |            |  
|                                                            |  |                                           
|Cumulative Translation Adjustment, End of Period            |  | $                                          |           |   |                            | $ |           |  
|                                                            |  |                                            |            |   |                            |   |            |  

See Notes to Financial Statements.



4



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CurrencyShares® Euro Trust

Statements of Cash Flows

(Unaudited)



|                                                                                                   |  |                                |                |   |                                 |   |              |  
|-------------------------------------------------------------------------------------------------- |  | ------------------------------ | -------------- | - | ------------------------------- | - | ------------ | -
|                                                                                                   |  | Nine months endedJuly 31, 2010 |                |   | Nine months endedJuly 
31, 2009 |  
|Cash flows from operating activities                                                               |  |                                |                |   |                                 |   |              |  
|Cash received for accrued income                                                                   |  | $                              | 345,773        |   |                                 | $ | 7,204,446    |  
|Cash paid for expenses                                                                             |  |                                | (1,789,127     | ) |                                 |   | (1,807,157   | )
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|Net cash (used in)/provided by operating activities                                                |  |                                | (1,443,354     | ) |                                 |   | 5,397,289    |  
|                                                                                                   |  |                               
|Cash flows from financing activities                                                               |  |                                |                |   |                                 |   |              |  
|Cash received to purchase redeemable shares                                                        |  |                                | 1,263,825,914  |   |                                 |   | 455,064,284  |  
|Cash paid to redeem redeemable shares                                                              |  |                                | (1,277,201,175 | ) |                                 |   | (455,081,941 | )
|Cash paid for distributions                                                                        |  |                                |               |   |                                 |   | (4,816,717   | )
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|Net cash used in financing activities                                                              |  |                                | (13,375,261    | ) |                                 |   | (4,834,374   | )
|                                                                                                   |  |                               
|Adjustment to period cash flows due to currency movement                                           |  |                                | (68,413,205    | ) |                                 |   | 63,507,882   |  
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|(Decrease)/Increase in cash                                                                        |  |                                | (83,231,820    | ) |                                 |   | 64,070,797   |  
|Cash at beginning of period                                                                        |  |                                | 589,687,376    |   |                                 |   | 538,448,166  |  
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|Cash at end of period                                                                              |  | $                              | 506,455,556    |   |                                 | $ | 602,518,963  |  
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|                                                                                                   |  |                               
|Reconciliation of net (loss)/income to net cash (used in)/provided by operating activities         |  |                                |                |   |                                 |   |              |  
|                                                                                                   |  |                               
|Net (Loss)/Income                                                                                  |  | $                              | (1,380,440     | ) |                                 | $ | 2,987,403    |  
|Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: |  |                                |                |   |                                 |   |              |  
|Receivable from accrued interest                                                                   |  |                                | (82,676        | ) |                                 |   | (43,469      | )
|Prior period receivable from accrued interest                                                      |  |                                | 42,662         |   |                                 |   | 2,325,782    |  
|Currency translation adjustment                                                                    |  |                                | 19,024         |   |                                 |   | 162,733      |  
|Accrued sponsor fee                                                                                |  |                                | 153,619        |   |                                 |   | 204,980      |  
|Prior period accrued sponsor fee                                                                   |  |                                | (195,543       | ) |                                 |   | (240,140     | )
|                                                                                                   |  |                                |                |   |                                 |   |              |  
|Net cash (used in)/provided by operating activities                                                |  | $                              | (1,443,354     | ) |                                 | $ | 5,397,289    |  
|                                                                                                   |  |                                |                |   |                                 |   |              |  

See Notes to Financial Statements.



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##### Table of Contents

CurrencyShares® Euro Trust

Notes to Financial Statements

(Unaudited)



|1. | Organization and Description of the Trust
|-- | -----------------------------------------

The
CurrencyShares® 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 Rydex Advisors II, LLC (also d/b/a Rydex Investments). The Sponsor is responsible for, among other things, overseeing the performance of
The Bank of New York Mellon (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 plus accrued interest less
the Trusts expenses and liabilities. 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 may earn interest and a secondary deposit account which does not earn interest. The secondary deposit account is used to account for any interest that may
be received and paid out on creations and redemptions of blocks of 50,000 Shares (Baskets). The secondary account is also used to account for interest earned, if any, on the primary deposit account, pay Trust expenses and distribute any
excess interest to holders of Shares (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 for interim financial information and with the instructions for Form 10-Q. 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 audited financial statements included in the Form 10-K filed on December 23, 2009.



|2. | Significant Accounting Policies
|-- | -------------------------------



|A. | Use of 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, liabilities and disclosures of
contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period and the evaluation of subsequent events through the issuance date of the financial statements. Actual results could
differ from those estimates.



|B. | Foreign Currency Translation
|-- | ----------------------------

The Trustee
calculates the Trusts net asset value (NAV) each business day, as described in Note 4. Prior to November 13, 2008, euro deposits (cash) were translated for NAV calculation purposes at the Noon Buying Rate, which was the
U.S. Dollar (USD)/euro exchange rate as determined and published by the Federal Reserve Bank of New York. As of November 13, 2008, euro deposits (cash) are translated for NAV calculation purposes at the Closing Spot Rate, which
is the USD/euro exchange rate as determined by WM/Reuters at 4:00 PM (London time) on each day that NYSE Arca is open for regular trading.



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The functional currency of the Trust is the euro in accordance with generally accepted accounting standards.
For financial statement reporting purposes, the USD is the reporting currency. As a result, the financial records of the Trust are translated from euro to USD. The Closing Spot Rate on the last day of the period is used for translation in the
statements of financial condition. The average Closing Spot Rate for the period is used for translation in the statement of income and comprehensive income and the statement of cash flows. Any currency translation adjustment is included in
comprehensive income.



|C. | 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 Shareholders.

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 portion of the Trusts income, if any, and as if they directly incurred their respective pro-rata portion 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 portion 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 interest income (if any) and gain (if any) upon the sale of euro. 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 portion 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.



|D. | Revenue Recognition
|-- | -------------------

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



|E. | 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 a pro rata-basis (in accordance with the number of
Shares that they own).



|3. | Euro Deposits
|-- | -------------

Euro principal deposits
are held in a euro-denominated, interest-bearing demand account. For the nine months ended July 31, 2010, there were euro principal deposits of 932,564,536, euro principal redemptions of



7



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##### Table of Contents

962,343,547 and euro withdrawals (to pay expenses) of 1,065,037, resulting in an ending euro principal balance of 358,846,072. This equates to 467,503,155 USD (which is net of USD redemptions
payable of 38,952,401). For the year ended October 31, 2009, there were euro principal deposits of 404,954,700, euro principal redemptions of 409,941,175 and euro withdrawals (to pay expenses) of 323,405, resulting in an ending euro principal
balance of 389,690,120. This equates to 574,948,803 USD (which is net of USD redemptions payable of 14,738,573).

Net interest, if any,
associated with creation and redemption activity is held in a euro-denominated non-interest-bearing account, and any balance is distributed in full as part of the monthly income distributions.



|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 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 through 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 Baskets.

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:



|                                                               |  |                                           |   |  |                            |                |   |        |            |   |                   |   |              |  
|-------------------------------------------------------------- |  | ----------------------------------------- | - |  | -------------------------- | -------------- | - | ------ | ---------- | - | ----------------- | - | ------------ | -
|                                                               |  | Nine months endedJuly 31,
2010(Unaudited) |   |  | Year endedOctober 31,
2009 |               
|                                                               |  | Shares                                    |   |  | U.S. DollarAmount          |                |   | Shares |            |   | U.S. DollarAmount |  
|Opening balance                                                |  | 3,900,000                                 |   |  | $                          | 574,795,922    |   |        | 3,950,000  |   |                   | $ | 502,378,480  |  
|Shares issued                                                  |  | 9,350,000                                 |   |  |                            | 1,263,825,914  |   |        | 4,050,000  |   |                   |   | 553,905,548  |  
|Shares redeemed                                                |  | (9,650,000                                | ) |  |                            | (1,304,182,892 | ) |        | (4,100,000 | ) |                   |   | (560,619,175 | )
|Adjustment to period Shares due to currency movement and other |  |                                          |   |  |                            | (67,006,732    | ) |        |           |   |                   |   | 79,131,069   |  
|                                                               |  |                                           |   |  |                            |                |   |        |            |   |                   |   |              |  
|Ending balance                                                 |  | 3,600,000                                 |   |  | $                          | 467,432,212    |   |        | 3,900,000  |   |                   | $ | 574,795,922  |  
|                                                               |  |                                           |   |  |                            |                |   |        |            |   |                   |   |              |  

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 Closing Spot Rate. If, on a particular
evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate will 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



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basis for the valuation. If the Trustee and the Sponsor determine that the most recent Closing Spot Rate is not an appropriate basis for valuation of the Trusts euro, they will determine an
alternative basis for the valuation. 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 Arca 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.

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.



|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 euro to USD exchange rate will have an adverse effect on the value of the Shares. 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. The price of euro has declined in recent months due, in part, to concern over the national debt level of Greece and other European countries. 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. All of the Trusts euro are held by the Depository.
Accordingly, a risk associated with the concentration of the Trusts assets in accounts held by a single financial institution exists and increases the potential for loss by the Trust and the Trusts beneficiaries in the event that the
Depository becomes insolvent.



|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 this arrangement is unknown, as
this would involve future claims that may be made against the Trust that have not yet occurred.



9



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##### Table of Contents

|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. 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. 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 risks and uncertainties include fluctuations in the price of the euro, as the value of the Shares relates directly to the value of the euro held by the
Trust and price fluctuations could materially adversely affect an investment in the Shares. Readers are urged to review the Risk Factors section contained in the Trusts most recent annual report on Form 10-K for a description of
other risks and uncertainties that may affect an investment in the Shares.

Neither Rydex Specialized Products LLC d/b/a Rydex Investments
(the Sponsor) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report. 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

The
CurrencyShares® Euro 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.
Investing in the Shares does not insulate the investor from certain risks, including price volatility.

The Shares began trading on the New
York Stock Exchange (NYSE) under the ticker symbol FXE on December 12, 2005. The primary listing of the Shares was transferred to NYSE Arca on October 30, 2007.

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 (USD), of the Trusts assets. To
calculate the NAV, The Bank of New York Mellon (the Trustee) adds to the amount of euro in the Trust at the end of the preceding business day accrued but unpaid interest, if any, 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.

Prior to November 13, 2008, the NAV was expressed in USD based on the Noon Buying Rate, which was the euro/USD exchange rate as
determined by the Federal Reserve Bank of New York. As of November 13, 2008, the NAV is expressed in USD based on the euro/USD exchange rate as determined by WM/Reuters at 4:00 PM (London time) (the Closing Spot Rate) on each day
that NYSE Arca is open for regular trading. If, on a particular evaluation day, the Closing Spot Rate has not been determined and announced by 6:00 PM (London time), then the most recent Closing Spot Rate will 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 the valuation. The Trustee also determines the NAV per Share, which equals the NAV of the Trust divided by the number of
outstanding Shares.



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The Sponsor publishes the NAV and NAV per Share on each day that the NYSE Arca 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
(1) NAV per Share, (2) the bid and ask midpoint offered on the NYSE (prior to October 30, 2007) and NYSE Arca (as of October 30, 2007) and (3) the Noon Buying Rate (prior to November 13, 2008)
and the Closing Spot Rate (as of November 13, 2008) expressed as a multiple of 100 euro:

LOGO



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Liquidity

The Sponsor is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to the Trusts
liquidity needs. The Trusts depository, JPMorgan Chase Bank, N.A., London Branch (the Depository), maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that
does not earn interest. Interest on the primary deposit account, if any, accrues daily and is paid monthly. The interest rate in effect as of July 31, 2010 was an annual nominal rate of 0.15%. The following chart provides the daily rate paid by
the Depository since the Shares began trading:

LOGO

In exchange for a fee, the Sponsor bears most of the expenses 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, if any, and the Trustee withdraws euro from the secondary deposit
account to pay the accrued Sponsors fee for the previous month plus other Trust expenses, if any. In the event that any 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). The Trust did not make any distributions
during the quarter ended July 31, 2010.

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 periods covered by this report.

In addition to the description below, please refer to Note 2 to the financial statements
for further discussion of the Trusts accounting policies.

The Trustee calculates the Trusts NAV each business day. For NAV
calculation purposes, euro deposits (cash) are translated at the Closing Spot Rate.

The functional currency of the Trust is euro in
accordance with generally accepted accounting standards.

Results of Operations

As of October 31, 2009, the number of euro owned by the Trust was 389,690,120, resulting in a redeemable capital share value of $574,795,922. During
the nine months ended July 31, 2010, an additional 9,350,000



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shares were created in exchange for 932,564,536 euro and 9,650,000 shares were redeemed in exchange for 962,343,547 euro. In addition, 1,065,037 euro were withdrawn to pay the portion of the
Sponsors fee that exceeded the interest earned. As of July 31, 2010, the number of euro owned by the Trust was 358,846,072, resulting in a redeemable capital share value of $467,432,212.

The decrease in the Trusts redeemable capital share value from $574,795,922 at October 31, 2009 to $467,432,212 at July 31, 2010 was
primarily the result of a decrease in the number of Shares outstanding from 3,900,000 at October 31, 2009 to 3,600,000 at July 31, 2010, and a decrease in the Closing Spot Rate from 1.4754 at October 31, 2009 to 1.3028 at
July 31, 2010.

Interest income decreased from $500,289 for the three months ended July 31, 2009 to $150,146 for the three months
ended July 31, 2010, and decreased from $4,733,702 for the nine months ended July 31, 2009 to $389,164 for the nine months ended July 31, 2010, attributable primarily to a reduction in the annual nominal interest rate paid by the
Depository, as set forth in the chart above.

The only expense of the Trust during the three months and nine months ended July 31, 2010
was the Sponsors fee. The Sponsors fee accrues daily at an annual nominal rate of 0.40% of the euro in the Trust. Due primarily to a decrease in the quarterly average Closing Spot Rate from 1.3918 for the three months ended July 31,
2009 to 1.2531 for the three months ended July 31, 2010 and a decrease in the weighted-average euro in the Trust, the Sponsors fee decreased from $600,103 for the three months ended July 31, 2009 to $528,334 for the three months
ended July 31, 2010. Due primarily to an increase in the average Closing Spot Rate from 1.3377 for the nine months ended July 31, 2009 to 1.3552 for the nine months ended July 31, 2010, and partially offset by a decrease in the
weighted-average euro in the Trust, the Sponsors fee increased from $1,746,299 for the nine months ended July 31, 2009 to $1,769,604 for the nine months ended July 31, 2010.

The Trusts net loss for the three months ended July 31, 2010 was $378,188, due to the Sponsors fee of $528,334 exceeding interest income
of $150,146. The Trusts net loss for the nine months ended July 31, 2010 was $1,380,440, due to the Sponsors fee of $1,769,604 exceeding the interest income of $389,164.

Cash dividends per Share decreased from $0.04 for the three months ended July 31, 2009 to $0.00 per Share for the three months ended July 31,
2010, and decreased from $1.08 for the nine months ended July 31, 2009 to $0.00 for the nine months ended July 31, 2010. This decrease in cash dividends per Share was primarily the result of a decrease in the annual nominal interest rate
paid by the Depository.

Movements in the Price of Euro

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 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 historical trends of the price of euro. The chart illustrates movements in the price of euro in USD based on the Noon Buying Rate (prior to November 13, 2008) and the Closing Spot Rate (as of
November 13, 2008).



13



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##### Table of Contents

LOGO



|Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

Except as described above with respect to fluctuations in the USD/euro exchange rate and changes in the nominal annual interest rate paid by the
Depository on euro held by the Trust, the Trust is not subject to market risk. The Trust does not hold securities and does not invest in derivative products.



|Item 4. | CONTROLS AND PROCEDURES
|------- | -----------------------

The Trust
maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) designed to ensure that material information relating to the Trust is recorded, processed and disclosed on a timely
basis. 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, 2010. 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 effective as of the end of the period covered by this report.

There were no changes in the Trusts internal control over financial reporting that occurred during the Trusts last fiscal quarter that have
materially affected, or are reasonably likely to materially affect, the Trusts internal control over financial reporting.



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##### Table of Contents

PART II - OTHER INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------

None.



|Item 1A. | Risk Factors
|-------- | ------------

Except as revised in the
Trusts Quarterly Report on Form 10-Q filed June 9, 2010, there have been no material changes from the risk factors previously disclosed in the Risk Factors section of the Trust's Annual Report on Form 10-K filed
December 23, 2009.



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------



|(a) | None.
|--- | -----



|(b) | Not applicable.
|--- | ---------------



|(c) | During the quarter ended July 31, 2010, 120 Baskets (6,000,000 Shares registered pursuant to Section 12 of the Securities Exchange Act of 1934) were redeemed
by the Trust, as follows:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                        |  |                                           |  |                         |       
|----------------------- |  | ----------------------------------------- |  | ----------------------- | ------
|Period                  |  | Total Number of RegisteredShares Redeemed |  | Average Price Per Share
|05/01/2010  05/31/2010 |  | 1,250,000                                 |  | $                       | 125.40
|06/01/2010  06/30/2010 |  | 3,600,000                                 |  | $                       | 122.34
|07/01/2010  07/31/2010 |  | 1,150,000                                 |  | $                       | 125.97



|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------

None.



|Item 4. | (Removed and Reserved)
|------- | ----------------------



|Item 5. | Other Information
|------- | -----------------

None.



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|Item 6. | Exhibits
|------- | --------



|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |  | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|4.1    |  | Amendment to Depositary Trust Agreement, dated November 13, 2008, by and between Rydex Specialized Products LLC, as Sponsor, and The Bank of New York Mellon, as Trustee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | 
|10.1   |  | Amendment to Deposit Account Agreement, dated November 13, 2008, by and between The Bank of New York Mellon, as Trustee, and JPMorgan Chase Bank, N.A., London Branch, as
Depository.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | 
|31.1   |  | Certification of Principal Executive Officer Pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       | 
|31.2   |  | Certification of Principal Financial Officer Pursuant to Section 302(a) 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       | 
|101    |  | The following materials from the Trust's Quarterly Report on Form 10-Q for the quarter ended July 31, 2010, formatted in XBRL (eXtensible Business Reporting Language); (i)
Statements of Financial Condition at July 31, 2010 and October 31, 2009, (ii) Statement of Income and Comprehensive Income for the three months ended July 31, 2010, three months ended July 31, 2009, nine months ended July 31, 2010 and the nine
months ended July 31, 2009, (iii) Statements of Changes in Shareholders' Equity for the nine months ended July 31, 2010 and the year ended October 31, 2009, (iv) Statements of Cash Flows for nine months ended July 31, 2010 and nine months ended July
31, 2009 and (v) Notes to Financial Statements.*





|* | To be filed by amendment.
|- | -------------------------



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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.



|                        |  |     |  |                            |  |                                          
|----------------------- |  | --- |  | -------------------------- |  | -----------------------------------------
|                        |  |     |  | CURRENCYSHARES® EURO TRUST
|                        |  |     | 
|                        |  |     |  | By:                        |  | Rydex Specialized Products LLC           
|                        |  |     |  |                            |  | Sponsor of the
CurrencyShares®
Euro Trust
|                        |  |    
|Date: September 9, 2010 |  | By: |  | /s/ Joseph Arruda         
|                        |  |     |  |                            |  | Joseph Arruda                            
|                        |  |     |  |                            |  | Chief Financial Officer                  
|                        |  |     |  |                            |  | (principal financial officer)            



17