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Your Federal Reserve ETF Playbook

Benzinga.com
0 Comments| July 29, 2015

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The Federal Reserve will reveal its latest monetary policy today at 2:00 p.m. ET. Most traders are not expecting the central bank to announce an interest rate increase, but with the conclusion of this Fed meeting, the calendar inches closer to September, widely believed to be the first meeting at which Janet Yellen and company could announce a rate hike.

Those looking to trade the news surrounding Wednesday's Fed decision, or lack thereof, have some compelling options from the world of exchange traded funds. Chief among them is the PowerShares DB US Dollar Index Bullish Fund (NYSE: UUP).

Playing The Currency

UUP is the U.S. Dollar Index Tracking ETF, meaning it gives investors to a long position in the greenback against the euro, yen, Swiss franc, Swedish krona, British pound and the Canadian dollar. Given the divergent monetary policies being seen throughout the developed world with the Fed eyeing higher rates as its counterparts in other regions pare borrowing costs, UUP is this year's second-best currency ETF, as it was in 2014, with a gain ...

/www.benzinga.com/trading-ideas/long-ideas/15/07/5715184/your-federal-reserve-etf-playbook alt=Your Federal Reserve ETF Playbook>Full story available on Benzinga.com

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