UUP includes a large 57.6% tilt toward euro currency movements against the greenback.
However, market observers will watch for the magnitude and speed at which the Fed tightens its monetary policy.
“It will be the shallowest (tightening) cycle in Fed memory, but it will lift off in contrast with what’s happening elsewhere,” Callum Henderson, head of currency research for Standard Chartered, told CNBC. “It is modestly bullish for the dollar heading into the rate hike. Once the Fed does hike, the market will look at how far and how fast the Fed will move and the dollar could lose momentum after that. But going into the first rate hike, who else is going to raise rates?”
PowerShares DB U.S. Dollar Index Bullish Fund
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