The U.S. dollar exchange traded fund slid below its short-term trend line, with the greenback depreciating to its lowest since June, as traders reduced bets on Federal Reserve action in light of weakening U.S. economic data.
The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) fell 0.2% Friday and was testing its support at the 50-day simple moving average. UUP tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
Meanwhile, the U.S. Dollar Index (DXY), which tracks the USD against a basket of major global currencies, also dropped 0.2% to 95.7.
The greenback declined against most major currencies after retail sales unexpectedly fell off last month while wholesale prices showed a surprise drop, Bloomberg reports.
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Investors have been keeping an eye on economic data to gauge whether or not the economy is healthy enough for the Fed to hike interest rates this year, which would help strengthen the U.S. dollar. However, weak U.S. growth and productivity data have made investors more skeptical of any hikes this year.[related_stories]