We have seen bullish call buying recently in options based on the dollar ETF, which has bounced the past two days following a long slide from the July high.

PowerShares US Dollar Index Bullish (NYSEArca: UUP) has not traded actively in terms of options, absent any directional activity for months ever since the euro broke out of its extended downtrend several months back.

That said, the recent UUP call buying would be conveyed as bullish for the U.S. Dollar and negative for the near term price direction of the Euro.

CurrencyShares Euro Trust (NYSEArca: FXE) has rallied 3.45% in the past 3 month period versus UUP staggering 3.69%, but in the trailing one year period, the Euro still has some catching up to do.

FXE is down 5.23% in the trailing one year with UUP only down 0.32%. Some  apparently are taking the stance that perhaps the Euro has rallied too hard, too fast during its recent leg up from its late July lows and are willing to get long exposure to the U.S Dollar via UUP options.

UUP is structured as an ETF, designed to track the DB Long U.S. Dollar Index (USDX) Futures Index, and is composed of USDX futures contracts.

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