Currency ETFs Give Insight to National Fiscal Issues and Policy

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Includes: BZF, CYB, DBV, FXA, FXB, FXC, FXE, FXF, FXM, FXS, FXY, UDN
by: MyPlanIQ

Currencies provide insight into how a nation is dealing with the current crisis and the strength of the underlying economies. We are tracking the ETFs that represent eleven different currencies and one basket of currencies.

More details are available on the MyPlanIQ website.

Description

Symbol

8-Nov Trend Score

Direction

Australia Dollar

(NYSE:FXA)

19%

Week 1

Mexican Peso

(NYSEARCA:FXM)

14%

Week 1

Brazilian Real

(NYSEARCA:BZF)

12%

Week 1

Japanese Yen

(NYSE:FXY)

10%

Week 1

Canadian Dollar

(NYSE:FXC)

10%

Week 1

Swiss Franc

(NYSE:FXF))

9%

Week 1

Swedish Krona

(NYSE:FXS)

8%

Week 1

G10 Carry Trade

(NYSE:DBV)

7%

Week 1

Chinese Yuan

(NYSEARCA:CYB)

2%

Week 1

US Dollar Bearish

(NYSEARCA:UDN)

0%

Week 1

British Pound

(NYSE:FXB)

-1%

Week 1

Euro

(NYSEARCA:FXE)

-4%

Week 1

The Australian Dollar reflects the hope of a recovery in China to whom they export many raw materials.

The Mexican Peso is buoyed by strong exports even as domestic demand is sluggish.

The Brazilian real had an up week, but there are concerns about eurozone debt and slowing Chinese demand for Latin American exports. This is one to watch carefully.

The US dollar is going to be under pressure from the QE2 injection of funds. It is already having a global impact on currencies.

The British pound is going to be tied to the dollar as both economies were significantly damaged by the "credit crunch." The UK is in the process of rolling out its austerity measures and then we will see what that does to the currency.

The euro recently rose from one-month lows to pull ahead of the dollar after being whipsawed by quantitative easing, sovereign debt fears and a weak 30-year Treasury auction.

Currencies will continue to fluctuate as the different economic zones deal with the fallout from the recent QE2 measure.

Disclosure: No positions