U.S. Dollar Bulls Stay Put During Dip

Many U.S. dollar bulls are holding onto their bets even though the euro has climbed to a three-week high against the U.S. dollar. The euro went above $1.44 on Wednesday, its highest level against the U.S. dollar since early May. Market commentators are saying the euro is receiving a boost because a deal for yet another bailout for Greece will be finalized by the end of the month. As one market commentator put it, "The more you print, the stronger your currency becomes. It's as simple as that these days." U.S. dollar bulls say weaker than expected nonfarm payroll employment figures due out Friday will lift the U.S. dollar higher, proving late April to be the bottom for the U.S. dollar. U.S. dollar bulls also point to recent data showing a double-dip in home prices and pessimism among consumers. The U.S. Dollar Index was down slightly early Wednesday but is down approximately 6% for the year. The U.S. Dollar Index is a measure of the value of the U.S. dollar against a basket of foreign currencies. Investors wishing to go long the U.S. dollar can buy PowerShares DB USD Index Bullish UUP. To short the euro, investors can buy the 2x leveraged Market Vectors Double Short Euro ETN DRR or the 2x leveraged ProShares UltraShort Euro EUO. Those seeking to go long the euro can buy Rydex CurrencyShares Euro Trust FXE or Market Vectors Double Long Euro ETN URR, a leveraged exchange-traded note that is 2x bullish the euro.