ETF Tracking Euro's Movements Against Dollar Can Keep Rising

Related: Traders Get Bullish on Euro ETFs

Aggressive, bearish traders can consider 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.

“The relative performance of European stocks in USD terms (blue line, left axis) tracks with a 90% correlation moves in the USD/EUR spot rate (red line, right axis). As the euro has risen against the USD so far in 2017 so to have European stocks outperformed global stocks. It follows then that further euro strength should result in further European stock outperformance,” according to ETF Daily News.

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