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. Expectations are in place for the dollar to continue rallying against the euro after the European Central Bank revealed it is not considering tapering its quantitative easing program. The euro was a solid performer earlier this year, but recently turned negative on a year-to-date basis.
Related: Are Dollar ETFs Ready to Rally?
The Dollar Index “may test the high from December of last year of 100.51. The DXY has fairly stout resistance around the 100.25 level. If the index is able to break through this resistance and move above 100.51, it may signal a breakout for the Dollar,” notes Options Express.
For more information on the greenback, visit our U.S. dollar category.
PowerShares DB U.S. Dollar Index Bullish Fund
