The U.S. dollar has gained some strength with commodities markets falling on profit taking and higher margin requirements. A weaker euro has dragged on the commodities market and exchange traded funds (ETFs) are moving on the news.
PowersShares DB US Dollar Bullish Fund (NYSEArca: UUP) has been catching a bid lately while the euro weakens. UUP plays the upside of the U.S. dollar in relation to the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
Gold prices have corrected and this has caused holdings in the mega fund SPDR Gold Shares (NYSEArca: GLD) to remain stagnant. Gold prices usually move opposite to the U.S. dollar.
The further uncertainty in Greece, as to whether or not the country will need further financial assistance, is also lending strength to the U.S. dollar.
Elsewhere in commodities, the Energy Department said oil inventories rose in the latest week while demand has weakened.
PowersShares DB US Dollar Bullish Fund
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. 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.