ETF Trends
ETF Trends

The U.S. dollar has been on a downtrend for most of the year, but the news is not all doom and gloom for this currency or its related exchange traded funds (ETFs).

Although the dollar is at multi-year and even record lows against some currencies, it’s getting stronger ahead of tomorrow’s unemployment figures. Unfortunately, the dollar could be weak for some time, especially if the Fed steps in with more stimulus. [Gold ETFs Look for Next Move.]

The dollar is slumping against some major currencies in ways not seen in years:

  • CurrencyShares Australian Dollar Trust (NYSEArca: FXA): The dollar is at its lowest level since 1983
  • CurrencyShares Swiss Franc (NYSEArca: FXF): The dollar is at its lowest level ever
  • WisdomTree Dreyfus Japanese Yen (NYSEArca: JYF): The dollar is at 15-year loes

It’s been a reversal of fortune for the euro at the dollar. Europe’s woes had hammered the euro, putting its future in doubt. There was hardly a day without bad news out of Ireland, Spain, Greece or some other European country, leading many to wonder if it was time to stick a fork in the euro, reports Trader’s Narrative. At that same time, the U.S. dollar soared.

Now the tables have turned, and the euro is riding high once again. Make what you want of it, but do so with a solid trend following strategy in place. As you can see, currency sentiment can change swiftly. By watching the 200-day moving average, you can be armed and ready to trade when a signal is reached. To ensure you don’t miss anything, sign up for our alerts! [U.S. Dollar Trips, Gold ETF Makes Gains.]

  • PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP)
  • PowerShares DB U.S. Dollar Index Bearish Fund (NYSEArca: UDN)

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.