Rising Dollar To Help Commodities ETFs like Copper Index (JJC)
December 17, 2009 9:51 AM
The rising dollar is expected to help commodities ETFs move higher on Thursday.
Funds to watch are PowerShares DB (NYSE: UUP), iPath Dow Jones Copper Index (NYSE: JJC), or SPDR Gold Trust (NYSE: GLD).
Almost all commodities are appreciating along with the dollar, since their prices are quoted in greenbacks. So it's not surprising that gold was trading 0.7% higher on Wednesday, copper prices gained more than 1%, and oil was up to about $73 on Thursday -- oil was helped by a report showing that U.S. inventories were decreasing.
Bearish comments on financials from renowned banking analyst Meredith Whitney are likely to drive down funds like the Financial Select SPDR (NYSE: XLF). Citigroup's unloading $17 billion in shares at a very low price on Wednesday will also hit financial ETFs.
