Additionally, ING believes that with the Federal Reserve still planning an interest rate hike while other central banks are engaging in loose monetary policies, buying the dollar is a good play in the currency markets. For instance, the European Central Bank has enacted an aggressive 1 trillion euro bond purchasing program, which has made the euro currency a prime selling target.
Currency traders who are looking to profit off continued weakness in the EUR can utilize inverse euro-currency ETF options. For example, the ProShares Short Euro (NYSEArca: EUFX) provides 100% of the inverse or opposite return on the U.S. dollar price of the euro. The ProShares UltraShort Euro (NYSEArca: EUO) provides 200% of the inverse return of the U.S. dollar price of the euro. Lastly, the Market Vectors Double Short Euro ETN (NYSEArca: DRR) also provides a -200% exposure to the euro.
PowerShares DB U.S. Dollar Index Bullish Fund
For more information on the USD, visit our U.S. dollar category.
Max Chen contributed to this article.