…or short UUP. But, you won’t be able to use as much leverage as using currency or derivatives directly, if that’s what you are looking for.
Buy the FXE on margin. You will be going leverage long the Euro. Or you could buy the Rydex Weakening Dollar Mutual Fund. This provides 2x Inverse leveraged exposure to the DXY index.
Or just trade the futures contract. The average daily move on the thing is a few hundred bucks. If you can’t afford to bet a few thousand bucks on this kind of thing, you shouldn’t be in the game.
if you want a systematic trade against USD, i.e. without any perspective on other currencies, buy a basket of foreign currency futures (3-4 major currencies will give you the short USD systematic exposure you desire - say euro, jpy, ukp, swf). remember, if your futures notional is larger than your cash positions, you are leveraging - be prepared for consequences. gold is an entirely separate asset class, that merits a separate decision.
^ That’s what the NYBOT dollar index is.
you can buy FXE which is the euro etf, but i wouldn’t do it.
I knew I should’ve shorted gold and gone long the dollar when a retail investor goes on a CFA message board asking how to short the dollar and get long $964,000 of gold with $4,338 in his brokerage account. This thread was started at almost the exact top of gold and exact bottom for the dollar this month.
haha well put farley… If I was going to long any foreign it would be the CNY. CZK/HUF/PLN have made some good moves recently as well.
I think there’s almost a 100% chance the CNY appreciates against the USD from here, but the question is how fast and are there better investments from an IRR perspective.