It could be just what exchange traded fund (ETF) investors who are bearish on the U.S. dollar want to hear: another day, another low.
After two days of setting records, the euro once again set one on Thursday, reports Erin Conroy for the Associated Press.
The dollar’s decline could complicate the Fed’s decision-making progress in regards to the economy. That’s because when the Fed cuts rates in an attempt to jump-start the economy, those cuts also drive the dollar lower.
Currency ETFs rallied on Wednesday thanks to the weakness of our money, says Wanfeng Zhou for Thomson Financial. Most CurrencyShares funds have been seeing positive territory this week:
- CurrencyShares Euro Trust (FXE), up 3% in the last week
- CurrencyShares British Pound Sterling Trust (FXB), up 2.2% in the last week
- CurrencyShares Swiss Franc Trust (FXF), up 3.8% in the last week
- CurrencyShares Japanese Yen Trust (FXY), up 1.8% in the last week
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.