High-Yield, Homebuilder And Currency ETFs To Watch This Week

Last week, the market traded in a very narrow range that was indicative of investors digesting data and consolidating for the next big move. The SPDR S&P 500 ETF Trust SPY has gained just over 1 percent through the first half of November and will look to further that progress into the holidays.

The week ahead features the release of housing data and first FOMC minutes since the Fed ended its quantitative easing programs.

Here are the key ETFs to watch for the week of Monday, November 17:

SPDR High Yield Corporate Bond ETF JNK

High-yield bonds have experienced their share of volatility over the last several months, and JNK appears to be ready to break lower once again. This ETF fell below its 200-day moving average last week and is showing overall weaker price action than other sectors of the fixed-income markets.

Related Link: Sector ETFs For A Happy Holiday Season

The basket of below investment-grade corporate debt owned by JNK is one indicator that stock market traders will be watching to gauge risk and sentiment for equities as well.

SPDR S&P Homebuilders ETF XHB

The monthly release of the homebuilders index and housing starts are expected to have an impact on XHB, which tracks 37 companies related to the housing sector. In addition, both Home Depot and Lowes Companies are due to report earnings. These companies make up nearly 7 percent of the underlying assets in this industry-specific ETF.

XHB fell to a year-to-date low in October, but has rebounded strongly over the last several weeks. Healthy economic data along with better-than-expected earnings announcements may be just what this ETF needs to break out before year end.

Guggenheim CurrencyShares Euro Trust FXE

The strength of the U.S. dollar versus rival foreign currencies such as the euro and Japanese yen has been a consistent theme throughout the second half of the year. However, recent price action in FXE is signaling a return of stability in foreign exchange markets that may turn the tide on the U.S. dollar.

This ETF is designed to mirror the price action of the benchmark european currency on a daily basis. If FXE can regain some upward momentum, it may play a role in impacting international stocks and commodity markets around the world.