Trends Spotted in Dollar, Yen and Euro ETFs | ETF Trends

An unsatisfactory jobs report was just another punch in the gut for the U.S. dollar exchange traded fund (ETF), which fell to three-month lows against better-faring currencies, including the euro and the Japanese yen.

New questions about an economic recovery are surfacing after the discouraging report. It also gave rise to speculation about what the Federal Reserve might do at its rate-setting meeting next week to kick-start the recovery, reports Bradley Davis for The Wall Street Journal. [ETFs to Hedge a Falling Dollar.]

The questions and uncertainties have currency ETFs moving in all sorts of directions:

Meanwhile, the euro pierced $1.33 to a three-month high, while the dollar flirted with a break below 85 yen, hitting its weakest point of the year against the Japanese currency[Gold, Euro and the Yen: ETFs for Changing Sentiments.]

For more stories about currency ETFs, visit our currency category. These are the major ETFs targeting these currencies; if you want to see all the options, visit our ETF Analyzer and select “currency ETFs” from the drop-down menu:

  • PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP): After weeks of gains, the dollar’s rally has appeared to peter out. UUP is now 2.4% below its 200-day moving average
  • CurrencyShares Japanese Yen Trust (NYSEArca: FXY): The yen is one of the strongest currencies going these days; FXY is 5.5% above the 200-day
  • CurrencyShares Euro Trust (NYSEArca: FXE): The euro is getting very close to its 200-day – it’s just 0.9% below it – so we could be getting ready to see the makings of a potential long-term uptrend.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Tisha Guerrero contributed to this article.

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.