Yesterday we found it curious that Crude Oil was punished yet the U.S. Dollar did not really move at all, but that was a short lived effect with the >1.2% vault in the Dollar in the early going today.
UUP (PowerShares DB U.S. Dollar Index Bullish, Expense Ratio 0.80%) has rallied in the early going above its 50 day MA for the first time in four sessions, as it spent most of this week plunging day after day versus other world currencies.
Most notably the trading volume in UUP this morning in only the first hour of trading is gigantic. We have seen more than 6 million shares change hands already, which is more than double its average daily volume of 2.8 million shares.
We would expect more volume to trickle in over the rest of the day and the product may very well eclipse record daily volume levels if this pace continues. In the trailing one month, UUP has seen about $120 million flow out of the fund via redemption activity, and the fund remains the largest U.S. Dollar tracking ETP in the U.S. listed marketplace with about $1.2 billion in assets under management. USDU (WisdomTree Bloomberg U.S. Dollar Bullish, Expense Ratio 0.50%) comes in second place in terms of asset size, with $532 million in AUM.
Unfortunately, two leveraged Bull/Bear products, UUPT and UDNT have subsequently been liquidated and closed by the issuer PowerShares, as we typically would watch them closely in times of volatile Dollar moves in order to capitalize on short term trading opportunities where they presented themselves.
There is however UDN (PowerShares DB U.S. Dollar Bearish, Expense Ratio 0.80%) which is notably smaller than its Bull sister UUP with only $39 million in assets under management.