Exposure to the Forex using Currency ETFs

Over the past three months, the US Dollar has been on a tear against the other global currencies. The dollar has gained, or more accurately "won back," 20% against the Euro, British Pound and Canadian Dollar in the past three months alone. In some cases this has reversed losses made over a year or more. This three month trend is not unique in the world of the Foreign Exchange. The valuation of one currency versus the other is primarily driven by much larger and fundamental economic forces relative to what drives an individual stock's movements. A few of the larger factors that drive currency values are as follows: interest rates and the increase or decrease in those rates by their central banks, inflation, GDP (Gross Domestic Production), trade balance trends, real estate and stock market rates of return. continued

by thinkorswim |  11/17/08  |  Stocks: FXA, FXB, FXC, FXE, FXF, FXM, FXS, FXY,