The US Dollar Index has fallen nearly 5% in the last three weeks as the stock market has rallied and money has moved out of the safe-haven currency into the Euro and other foreign currencies.
There has yet to be a resolution out of Europe and as speculation that a big deal will not get done the stock market rally has faded and the US Dollar has found support. If the news is not very good out of Europe in regards to a Greece bailout I expect stocks to fall after hitting resistance and the Greenback will rally.
To play such a rally in the US Dollar there is the PowerShares US Dollar Index Bullish ETF ($UUP) that moves in tandem with the index. The ETF is attempting to make a short-term bottom today.
For the more aggressive trader there is the ProShares UltraShort Euro ETF ($EUO) which is double the inverse daily move of the Euro. So as the US Dollar rises the Euro will likely fall.
** All leveraged ETFs are very aggressive in nature.
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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