The US Dollar ETF’s Are Showing Signs Of The Beginning Of A Reversal

strong-dollar“The Dow, S&P 500 and the Nasdaq are still stuck in their ranges which started in the middle of last month. For a little more excitement look to the US dollar. There is a lot of interest in the dollar these days. The big position trade of the past year has been to short the dollar. As this was happening the US markets were getting stronger. Some will reason, cheaper dollar brings in more forgein investment which supports our economy. In the past week the dollar has decided to bounce a little, however the markets keep going up,” Bill Florence Reports From Examiner.

“This convergence is creating a buzz on Wall St. and what will happen next is a hot debate. What can be seen from the charts is the hightened interest in issues such as the Power Shares DB US Dollar Bull (UUP) and it’s counterpart Power Shares DB US Dollar Bear (UDN). Both seem to be showing signs of the beginning of a reversal,” Florence Reports.

 The investment (UUP) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures index. The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

The investment (UDN) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Short US Dollar Futures index. The index is comprised solely of short futures contracts. The futures contract is designed to replicate the performance of being short the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

Chart for PowerShares DB US Dollar Index Bearish (UDN)

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