Currency ETFs try to reflect the performance of a single currency or a basket of currencies. ETF providers structure their currency funds to try to reflect the movements of a currency in a foreign exchange market by holding foreign currencies directly, foreign currency denominated short-term debt instrument, derivatives or swaps.

Related: How to tap the Forex Market With ETFs

“We see the cash US Dollar Index (DXY) prices bouncing back strongly in recent sessions. The DXY is now back above previous support of 94.00. The recent close above the 20-day moving average suggests that a near-term low may be in place. Prices have been testing the 50-day moving average over the past several sessions. A close above the average could be a signal of further near-term strength,” adds OptionsExpress.

For more news and strategy on the Currency ETF market, visit our Currency category.

PowerShares DB U.S. Dollar Index Bullish Fund