PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) has broken a key support level with the greenback falling sharply on news the Federal Reserve will stay full steam ahead on quantitative easing.
The dollar on Thursday was languishing near a seven-month low against its major currency rivals, according to Reuters.
The Dollar Index fallen to levels not seen since Federal Reserve Chairman Ben Bernanke first mentioned the possibility of Fed tapering in May, according to the report.
“Currency traders are just taking the dollar down across the board,” said Jonathan Lewis, chief investment officer at Samson Capital Advisors, in a Dow Jones Newswires report.
The Fed has taken on a more dovish tone, and that could cause the dollar ETF to come under more pressure.
“This sets up a situation where the dollar could end up in a protracted downtrend,” said Shahab Jalinoos, currency strategist at UBS, in the Dow Jones story. “This is unmitigated bad news for the dollar.”
PowerShares DB US Dollar Index Bullish Fund