Momentum for Dollar ETFs as Fed Stands Pat on Rates

Until recently, the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) was one of this year’s best-performing currency exchange traded funds, but that status started to change for the worse recently amid speculation that the Bank of Japan has more easing efforts left in its tank.

The yen and FXY have been bolstered by investors’ thirst this year safe-haven assets, a desire that appears to be growing stronger in the wake of Great Britain’s decision, revealed late last week, to depart the European Union (EU). That is to say betting against the yen has not only been difficult, but wrong.

Related: Japan’s 2016 Monetary Policy: Mistakes and Missed Opportunities

“Two more currencies — the Japanese yen and Canadian dollar — seem to confirm dollar strength. Both are components of the dollar basket. The yen had been heading higher versus the greenback while Canada was trading in line with its southern cousin. Both of those conditions have changed,” according to Barron’s.

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PowerShares DB U.S. Dollar Index Bullish Fund