It's Not All Green for Dollar ETFs

“Trump’s success, in other words, depends on what the dollar does. And right now, it’s freakishly strong, having risen 25% against its major trade partners’ currencies since mid-2014,” reports Quartz.

The yen is another one of the major developed market currencies currently showing weakness against the greenback. The euro is another must watch currency for dollar bulls.

While the ECB’s efforts to weaken the euro this year have not delivered on par with investors’ expectations, some market observers still believe the currency is heading for more downside. That does not mean the euro does not face more near-term downside, a scenario that could worsen for the common currency if the dollar rises in anticipation of higher interest rates in the U.S. After raising interest rates earlier this month, the Federal Reserve is expected to raise rates three times in 2017.

Euro weakness would benefit the ProShares UltraShort Euro (NYSEArca: EUO). Underscoring the euro’s prominence on the global currency stage and investors’ willingness to bet on weakness for the currency, EUO is one of the largest currency ETFs trading in the U.S. Another idea for euro bears to consider is the VanEck Vectors Double Short Euro ETN (NYSEArca: DRR).

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