Dollar ETF Wobbles, but Isn't Knocked Out

The WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEARCA: USDU) has performed slightly better than UUP this year, which is to say USDU has been less bad than UUP.

USDU tracks the dollar against a broader group of developed and emerging market currencies in an attempt to outperform the Bloomberg Dollar Total Return Index. That ETF features exposure to emerging markets currencies whereas UUP only measures the dollar against major developed market currencies.

“The greenback has weakened sharply versus the euro losing nearly 12 percent, according to Reuters data,” according to Reuters. “The Goldman analysts revised their 12-month forecast for the euro against the dollar to $1.15 from $1.05.”

Related: Anti-Dollar Trade may be too Crowded

The CurrencyShares Euro Currency Trust (NYSEArca: FXE), which tracks the euro’s price movements against the dollar, is one of this year’s best-performing developed market currency exchange traded funds. Traders have recently been abandoning short positions on the euro, potentially signaling more upside for the common currency against the dollar.

For more information on the USD, visit our U.S. dollar category.