“Traders see a 34 percent chance the Fed will raise interest rates at its September meeting, down from a 48 percent probability at the end of last week, futures show. The gauge is based on the assumption that the effective fed funds rate will average 0.375 percent after the first increase,” report Rachel Evans and Andrea Wong for Bloomberg.
The actively managed USDU’s advantage over UUP in recent weeks is likely attributable to the former’s exposure to some faltering emerging markets currencies, including the Mexican peso, Chinese yuan and Brazilian real. UUP tracks the U.S. Dollar Index, which follows the dollar against a basket of developed market currencies.
WisdomTree Bloomberg U.S. Dollar Bullish Fund
