3 Strong Dollar ETF Plays
Benzinga | Jul 10, 2013 12:41AM ET
Speculation that the Federal Reserve will soon begin tapering its quantitative easing program, which by some accounts could start in September, has been good news for the U.S. dollar.
It was not long ago that the term "king dollar" was more snark than reality as riskier currencies such as the Australian dollar and even the embattled euro traded higher against the greenback.
Helped by the Fed, the greenback has changed its ways as the PowerShares DB US Dollar Index Bullish (UUP), the tracking ETF for the U.S. Dollar Index, has gained 3.5 percent in the past month. With expectations in place that a tapering announcement will arrive following the Fed's September meeting, the dollar could have more upside ahead of it.
UBS thinks so. The bank is forecasting year end targets of EUR/USD 1.20, USD/JPY 1.10 and GBP/USD 1.41, according to WisdomTree. And that does not include the fact that if AUD/USD falls below 90 cents, according to Index Universe data .
BY Todd Shriber, ETF Professor
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