Currency ETFs

Traders found solace in safe-haven currency exchange traded funds as global uncertainty fueled the risk-off environment. On Tuesday, the CurrencyShares Euro Currency Trust (NYSEArca: FXE) was up 1.0%, CurrencyShares Japanese Yen Trust (NYSEArca: FXY) gained 0.8% and CurrencyShares Swiss Franc Trust (NYSEArca: FXF) was 1.6% higher. Over the past week, FXE added 2.7%, FXY increased […]

The U.S. dollar plunged Wednesday, with a greenback-related exchange traded fund dipping below its long-term trend line, as the worsening economic outlook and ongoing volatility added to skepticism that the Federal Reserve would pull the trigger on another rate hike anytime soon. The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) fell 2.0% Wednesday, […]

The Bank of Japan unexpectedly implemented negative interest rates Friday in response to the volatile global markets that has added to its ongoing deflationary risks, bolstering Japan country-specific exchange traded funds and pulling the rug from under the yen currency. The iShares MSCI Japan ETF (NYSEArca: EWJ), the largest Japan-related ETF, was 1.8% higher Friday. […]

With global volatility threatening the Eurozone economic recovery, the European Central Bank could be forced to enact more aggressive measures, potentially lifting Europe-related exchange traded funds. ECB president Mario Draghi said that officials will review their plans at the next policy session in March and stated that there are “no limits” on how far the […]

While volatility racked the markets, currency exchange traded funds that track safe-haven currencies like the euro, Japanese yen and Swiss franc strengthened. On Friday, the CurrencyShares Euro Currency Trust (NYSEArca: FXE) was up 0.4%, CurrencyShares Japanese Yen Trust (NYSEArca: FXY) gained 0.9% and CurrencyShares Swiss Franc Trust (NYSEArca: FXF) was 0.9% higher. FXY has been […]

Exchange traded fund investors thinking about international exposure may capture improved growth abroad if the strength in the U.S. dollar slows down. John Bilton, global head of multi asset strategy at JPMorgan Asset Management, argues on the Financial Times that the dollar strength will not become excessive, which will help reinforce the US expansion and […]

European stocks and region-specific exchange traded funds were among the best international markets as the European Central Bank’s loose monetary policies added to the early year rally. Eurozone equities were leading during the first half of the year as the ECB enacted an aggressive bond purchasing program and cut rates. However, the markets soured on […]

While many anticipate the U.S. dollar to continue to strengthen against foreign currencies, especially with the Federal Reserve targeting higher rates, the Canadian dollar and currency-related exchange traded fund may outperform the greenback. Many currency watchers anticipate the USD to appreciate against foreign currencies, albeit at a slower pace. “The move may be more muted […]

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, has climbed nearly 18% over the past two years, making the Dollar Index tracking ETF one of […]

The CurrencyShares Euro Currency Trust (NYSEArca: FXE) is 10.6% this year, good for one of the worst performances among exchange trade funds tracking developed market currencies. While a major rebound for FXE and the common currency next is not something many currency market analysts are expecting, investors might do well to temper expectations for significant […]

The Bank of Japan announced Friday that it will maintain the quantitative easing program and increase purchases of Japanese equities through exchange traded funds. However, market observers were unimpressed by the extended measures to combat a prolonged growth stunt. Japanese equities weakened Friday, with the Nikkei 225 index falling 1.9% to 18,986.8, after the BOJ […]

After the Federal Reserve announced the start of higher interest rates, the weaker euro currency, along with the improved outlook for European exporters, is supporting currency-hedged Europe exchange traded funds. Euro-currency hedged ETFs, which diminish the negative effects of a stronger dollar or weaker euro currency, outpaced other Europe ETFs as the falling euro helped […]

Following Wednesday’s news of the Federal Reserve’s first interest rate hike in nearly a decade, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, closed higher […]

Interest rate-sensitive assets and related exchange traded funds were relatively unfazed by the Federal Reserve’s announced first rate hike since 2006, suggesting that the markets may have already priced in higher rates. The Federal Open Market Committee announced that it will raise the benchmark interest rate by a quarter of a percentage point to between […]

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, traded higher Tuesday in advance of Wednesday’s Fed meeting. However, market participants are displaying some mixed emotions […]

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, is up nearly 6% year-to-date. That makes UUP one of the best-performing currency exchange traded funds this […]

The CurrencyShares Canadian Dollar Trust (NYSE: FXC) lost more than 2% last week and finished the week near 52-week lows as oil’s rout deepened. Crude futures tumbled more than 10% last week and closed at seven-year lows. Canada enjoys large natural resource reserves. As we have witnessed, Canada’s oil production could either lift or weigh […]

The Eurozone euro and Japanese yen, along with currency-related exchange traded funds, are bouncing back as a spike in volatility pushed traders to safer corners of the market. The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) rose 0.7% Friday and broke back above its 200-day simple moving average. The CurrencyShares Euro Currency Trust (NYSEArca: FXE) was […]

Eurozone equities and region-related exchange traded funds bounced back Friday as bargain hunters pounced on a cheap opportunity following a steep sell-off on disappointing European Central Bank action. On Friday, the iShares MSCI EMU ETF (NYSEArca: EZU) rose 0.8% and the SPDR EURO STOXX 50 (NYSEArca: FEZ) gained 0.9% after European stocks saw their worst […]

The Eurozone currency and euro-related exchange traded funds surged Thursday after the European Central Bank disheartened markets with bare-bone stimulus measures and triggered a short squeeze. The CurrencyShares Euro Currency Trust (NYSEArca: FXE) rose 2.8% Thursday, with the euro currency up 2.8% to $1.0915 mid-day. Meanwhile, the leveraged long euro ETFs ProShares Ultra Euro (NYSEArca: […]

The Federal Reserve meets later this month and traders widely expect the U.S. central bank to raise interest rates for the first time in nine years. The European Central Bank (ECB) also meets this month and traders widely expect the expansion of the ECB’s quantitative easing program. Either event should lead to more downside for […]

The U.S. dollar and currency-related exchange traded funds have bounced back to their highest levels since spring as traders bet on diverging central bank policies ahead. Over the past three months, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, […]

The CurrencyShares British Pound Sterling Trust (NYSEArca: FXB) is off 1.7% over the past month, but currency traders should keep an eye on the British pound ETF in the near-term because the next several days could prove impactful for FXB. The U.S. dollar has developed a reputation, well-deserved at that, for being one of the […]

Currency-hedged Eurozone exchange traded funds bounced Wednesday as the euro weakened and European markets strengthened on speculation the European Central Bank is considering additional bond purchases and fining banks to deter cash hoarding. On Wednesday, the iShares MSCI EMU ETF (NYSEArca: EZU) rose 1.0% and the SPDR EURO STOXX 50 (NYSEArca: FEZ) was 0.9% higher. […]

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, has surged 5% over the past month and much of that move is attributable to speculation that […]

For more than a year now, commodity prices have been under pressure from the strong U.S. dollar and slowing global demand. This has made a huge dent in the balance sheet of many net exporters of resources, in turn weakening their currencies. This should come as a shock to no one, but what most people […]

The CurrencyShares Euro Currency Trust (NYSEArca: FXE) is down 12.4% year-to-date, but the really bad news is the exchange traded fund has limited prospects for near-term upside, particularly against the backdrop of diverging central bank policies between the Federal Reserve and the European Central Bank. Currency traders who are looking to profit off any potential […]

U.S. dollar exchange traded funds continue to strengthen as currency traders anticipate the Federal Reserve is on schedule to normalize its monetary policies, with the euro heading toward dollar parity. Over the past month, the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a […]

While new economic data reveals Japan has entered its first technical recession in five years, Japanese country-specific exchange traded funds strengthened along with the broader market. Japan’s gross domestic product shrank at an annualized 0.8% in the July-September period from the previous quarter, after a revised 0.7% contraction in the second quarter, reports Mitsuru Obe […]

The FX factor – that is, the economic impact of foreign currency exchange rates – is increasingly relevant not only to nominal GDP outcomes in The New Neutral global macro environment (for details, see Part I of this blog series), but also to the microeconomic side. For many corporations, FX volatility is shaking up their […]