Currency exchange traded funds (ETFs) can be used to take advantage of the position of the dollar and other currencies.  A U.S. Labor Department  report showed non-farm payrolls rose by 167,000 last month, causing the U.S. dollar to rally to six week highs against the euro and the British pound. Wanfeng Zhou of MarketWatch reports recent trading patterns should continue and the dollar will remain near its highs as job numbers continue to support the case for the Fed to remain on hold.

What does this mean for the foreign currency ETFs?  Most have declined by 1-2% within the last week alone. However the Euro is up about 8% in the past twelve months compared to the US dollar.

Currency ETFs include:

  • CurrencyShares Euro Trust (FXE)
  • CurrencyShares British Pound (FXB)
  • CurrencyShares Canadian Dollar Trust (FXC)
  • CurrencyShares Australian Dollar Trust (FXA)
  • CurrencyShares Swiss Franc Trust (FXF)
  • CurrencyShares Swedish Krona Trust (FXS)
  • CurrencyShares Mexican Peso Trust (FXM)


Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.