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PowerShares DB USD Bear ETF (UDN)

  • Apr. 18, 2011, 4:41 PM
    Forget the S&P rating action, says Cullen Roche; the only news that matters today is an FT article that the Fed will soon signal the end of QE. The price action - stocks down, bonds up, dollar up - is exactly what one would expect for the end of the QE trade.
  • Apr. 15, 2011, 11:26 AM
    "Buy the buck now, not later," says Thomas Flury of UBS who says the stars are aligned for "short term strength." Among his many reasons are extreme levels of short dollar positions and the possible re-up of a 2004 law that cut taxes for companies repatriating their overseas greenbacks. UUP +0.2%.
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  • Apr. 14, 2011, 10:29 AM
    Following news its GDP tripped along at a 23.5% Y/Y rate last quarter (double expectations), Singapore (EWS) joins a growing list of countries allowing faster appreciation of domestic currencies to combat inflation. Without central banks' active support, the dollar could be headed lower still. UUP -0.2%.
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  • Apr. 14, 2011, 7:26 AM
    The PBOC reports China's foreign currency reserves jumping $197B in the 1st quarter to more than $3T. The growth in reserves suggests, despite a 1st quarter trade deficit, China continues to print gobs of yuan to buy up greenbacks. The G-20 gathers tonight in D.C.
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  • Apr. 11, 2011, 9:34 AM
    Speaking in Japan, FRBNY President Dudley quashes thoughts of tightening monetary policy with so much slack in the economy. Possibly getting a dig in at the ECB, he warns headline inflation will get a boost from oil prices, but hiking rates because of that would be a policy mistake. No iPad mentions today.
  • Apr. 11, 2011, 7:22 AM
    "A giant ponzi" scheme is former PBOC advisor Yu Yongding's description of the U.S. Treasury market, who contends the Fed is the only thing standing between current bond prices and reality. Letting the yuan float would lessen the need for China to purchase U.S. debt, says Mr Yu.
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  • Apr. 8, 2011, 12:22 PM
    With QEII making the Fed the marginal buyer of Treasuries, its ending means Bernanke will soon have to hike interest rates in order to attract real money buyers, says Don Coxe. This will put strain on a financial system unable to handle it. Commodities will benefit, as will the loonie, "the new Swiss franc."
  • Apr. 8, 2011, 7:42 AM
    It's another wave of green across the commodity sector, with gold hitting a new record, silver crossing $40/oz, and WTI crude threatening $112/barrel. No particular news, but the greenback sinking across the board has something to do with it. Premarket:UUP -0.5%.
    | 1 Comment
  • Apr. 6, 2011, 10:44 AM
    Not being left out of the commodity currency party, the aussie is up sharply, hitting an all-time high of $104.34; FXA +0.8%. The flipside of these currency rallies - the dollar is getting beat with the ugly stick, UUP -0.5%, hitting the low point since its creation. UDN +0.4%.
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  • Apr. 5, 2011, 9:19 AM
    One reason for the dollar's mild, repeat, mild bid this morning: the South Korean, Indonesian, and Malaysian central banks intervened last night, selling domestic currency and buying greenbacks. The move is seen as an attempt to only slow their currencies' strength, not reverse it.
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  • Apr. 1, 2011, 11:10 AM
    The greenback returns to its pre-NFP levels as NY Fed President Dudley puts the kibosh on all the loose talk about tighter monetary policy. Bonds settle down as well, the yield on the 10 year returning to 3.46% from 3.51%, the 2 year at 0.84% from 0.88%.
  • Mar. 31, 2011, 5:31 PM
    Fed watchers won't have long to wait to see how the pro-QE trio of Bernanke, Yellen, and Dudley feel about recent hawkish talk, especially today's assertion that rates may have to rise 75 basis points this year. If Bill Dudley doesn't refute the hawks at a speech tomorrow, it may well be that rate hikes are now on the table.
  • Mar. 31, 2011, 4:08 PM
    Breaking: Admitting QE has boosted inflation expectations more than expected, Minneapolis Fed President Kocherlakota says the Fed Funds rate may need to rise 75 basis points in 2011. The dollar gains sharply against the major currencies.
  • Mar. 28, 2011, 5:44 PM
    A contrary voice amidst the rally in commodity currencies - (FXC), (FXA) - Paul Robinson from Barclays calls them overvalued and due for a pullback in the 2nd half of the year. The key to a reversal could be quicker than expected monetary tightening from the major economies.
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  • Mar. 28, 2011, 7:35 AM
    More hawkish talk out of the Fed, a major political loss for Angela Merkel, and chatter about "burden-sharing" on Irish senior bank debt cause the euro to gap down about 50 pips at the open yesterday. It has recouped some of those losses, but remains -0.3% at $1.4142.
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  • Mar. 25, 2011, 12:31 PM
    A hawkish speech by FOMC member Plosser gets the dollar's tail in the air. The Philadelphia Fed President says monetary policy will have to reverse course in the near future. Full speech (pdf).
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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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