The European Central Bank has been implementing a loose monetary policy that dragged yields down to record lows. Consequently, dividend-paying European stocks and related exchange traded funds (ETFs) may strengthen as more investors turn to riskier assets.

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). Predictably, those ETFs have been stymied by the euro’s surprise ascent.

“Hedgers have actually moved to a net short position in Euro futures for the first time since that May 2014 top,” reports ETF Daily News. “With that said, the Euro has gained some key technical ground over the past few days. Could the currency finally be launching its long-overdue rally. Or will the spent fuel in the futures market turn into a headwind for the currency?

For more information on hedged options, visit our currency hedged ETFs category.