Over the last week the Euro has rallied approximately 5% and the Aussie Dollar is up 7% as the US Dollar falls from an 8-month high. The fall in the greenback is directly correlated to the move up in stocks as the risk-trade is back on and money is leaving the perceived safe-haven US Dollar.
My long-term view on the US Dollar is that it will continue the trend lower as stocks rise and as the government needs the currency low to increase exports. To play a weak greenback there is the PowerShares US Dollar Bearish ETF ($UDN).
There is also a variety of foreign currency ETFs. The Aussie Dollar is $FXA and Euro is $FXE.
Investors looking to invest in a basket of foreign currencies that focus on the emerging markets could consider the Wisdom Tree Emerging Currency ETF ($CEW). The ETF has rallied recently with the drop in the US Dollar.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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