Invesco DB US Dollar Index Bullish ETF UUP is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 11.9% from its 52-week low price of $26.92/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
UUP in Focus
The underlying Deutsche Bank Long USD Currency Portfolio Index - Excess Return is a rules-based index composed solely of long U.S. Dollar Index futures contracts that trade on the ICE futures exchange. The product charges 78 bps in annual fees.
Why the Move?
The U.S. dollar has been on the rise since Donald Trump’s big win in the presidential election. The currency surged to a one-year high against a basket of currencies. Trump's policies on restricting illegal immigration, enacting new tariffs, lowering taxes and reducing regulations may boost the economy and inflation, thereby limiting the Federal Reserve's ability to cut rates, which is a positive for dollar. Additionally, the anticipation of increased deficit spending has propelled Treasury yields, offering further support to the dollar.
More Gains Ahead?
The ETF UUP might continue its strong performance in the near term, with a positive weighted alpha of 5.84, which gives cues of a further rally.
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Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
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