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PowerShares DB USD Bear ETF (UDN)

  • May. 17, 2011, 9:16 AM
    Sterling gives up sharp gains following stronger than expected U.K inflation. Two reasons: First, the report is not likely to bring about tighter policy from the BoE, which is dug in on the transitory nature of higher prices. Second, a mild "risk on" day has morphed into a mild "risk off" day, bearish for currencies.
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  • May. 16, 2011, 11:16 AM
    The "risk on" move that began around the time the East Coast woke up brings notable reversals in the currency market. The euro makes a particularly impressive move, gaining nearly 200 pips from its jittery opening in the wake of the DSK news. Somebody actually sold euros because of this? FXE +0.9%, UUP -0.6%.
  • May. 13, 2011, 11:49 AM
    Unable to bear uninformed chatter about the dollar moving commodities or vice versa (and by extension stock prices), John Forman takes the time to run some regression analysis. Not too surprisingly, he finds neither asset leading the other, but both trading off the same drivers and moving together.
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  • May. 13, 2011, 10:05 AM
    A reversal in capital flows due to the end of QEII is likely to be the cause of the next leg down in commodities, argues UBS. Emerging markets, no longer needing to print domestic currency to sweep up dollars, will see a lending boom end. UBS is getting long greenbacks, long bonds, short commodities, short EM shares.
  • May. 5, 2011, 3:49 PM
    The removal of the word "vigilance" from Trichet's opening statement this morning and a nod to Geithner/Bernanke talking up the dollar was more than a signal the ECB was going to pause its rate hikes, says Steve Liesman. It could be the ECB is waiting for the Fed to make the next rate move. FXE -2.0%.
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  • May. 4, 2011, 12:04 PM
    Seeking to further diversify from the greenback, South Korea considers investing a portion of its more than $300B in foreign currency reserves (7th largest on the planet) in yuan-denominated securities. U.S. securities currently make up about 64% of SK's stash.
  • May. 4, 2011, 10:55 AM
    Business is booming at FiREapps, where CEO Wolfgang Koester says U.S. firms are clamoring to hedge against dollar weakness. Jeff Macke notes companies getting swept up in this sort of worry could mark the sign of a market extreme - witness airlines' rush to hedge near the top of the 2008 oil mania.
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  • May. 3, 2011, 10:36 AM
    Seeking an outlet for FX reserves other than U.S. Treasuries, Asian policymakers meeting in Hanoi discuss setting up a fund to invest in needed infrastructure. More than a decade after the Asian contagion, these countries have built up $6T in reserves, half of that belonging to China.
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  • May. 2, 2011, 12:27 PM
    A roundup of economists' reactions to the killing of Osama bin Laden ranges from effects on the dollar and gold to an overall lowering of equity risk premiums and beyond. Ed Yardeni: "My sense is that most fully invested bears would turn into outright bulls if fiscal discipline were to make a comeback in the U.S. and if John Wayne were back in the saddle again."
  • May. 2, 2011, 11:35 AM
    A falling dollar brings handles not recently seen or never seen before vs. major currencies. The euro climbs to $1.49 for the first time since 2009, now within sight of pre-GFC levels. The aussie punches through $1.10, never even having hit $1.03 just six weeks ago.
  • Apr. 30, 2011, 8:15 AM
    Tim Geithner and Treasury may not be intentionally holding down the dollar, but that doesn't mean it's poised for any kind of rally. There are still ways to profit from the incredible shrinking greenback, including large-cap heavy exporters, international bonds, gold (of course), and some - not all - foreign currencies.
  • Apr. 29, 2011, 2:19 PM
    "Our economy is far from where we would like it to be," says Fed chief Bernanke at a conference about the challenges facing lower/moderate income communities. Gold likes what it hears, now surging 2% to $1,562/oz. The dollar plumbs fresh 30-month lows.
  • Apr. 29, 2011, 9:19 AM
    Despite the usual rhetoric about the desire for a strong currency, U.S. officials seem unconcerned with the weakening greenback. The current decline in the dollar isn't out of line with 3 of its other recent bear markets. The only problem is 2 of those 3 moves ended with major financial panics.
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  • Apr. 29, 2011, 8:33 AM
    The greenback falls to another record low vs. the swiss franc after SNB chief Hildebrand says current expansionary Swiss monetary policy poses a risk to price stability. Having waved goodbye to parity shortly after QEII began, the dollar now buys CHF0.8655. FXF +22.5% Y/Y.
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  • Apr. 28, 2011, 9:40 AM
    Gradual appreciation of Asian currencies should ease inflation pressures in the region, says Eisuke Sakakibara. Known as "Mr. Yen" back in the day for his ability to move currency markets, Sakakibara isn't convinced the U.S. will see the last of QE at the end of June. Related ETF: AYT.
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  • Apr. 27, 2011, 12:46 PM
    The key to the FOMC statement, and an all-clear signal to those who would sell greenbacks, may be that there were no dissenting votes after a number of recent comments from Charles Plosser and Richard Fisher indicated their discomfort with current monetary policy.
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UDN Description
The PowerShares DB US Dollar Bearish Fund (Symbol: UDN) is based on the Deutsche Bank Short US Dollar Index (USDX®) Futures Index™ (DB Short USD Futures Index). The Index, which is managed by DB Commodity Services LLC, is a rules-based index composed solely of short USDX® futures contracts. The USDX® futures contract is designed to replicate the performance of being short the US Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. You cannot invest directly in an index. Ordinary brokerage commissions apply.
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