Four ETFs For Global Currency Interventions

The Federal Reserve may be content to keep interest rates low for awhile, suppressing the strength of the U.S. dollar in the process, but the U.S. isn't the only country looking to weaken or debase its currency. Sure, the folks in Washington talk a good game about a strong dollar, but it never comes about. However, there are some central banks in the world that you can believe when it comes to at least making an effort to weaken their currencies. That creates plenty of opportunities for savvy traders and with a growing selection of forex ETFs on the market, traders don't need to head directly to the forex market to take advantage of a potential wave of currency interventions. These four ETFs will help you get started. ProShares UltraShort Yen

: Captain Obvious here, but yes, the yen is far too strong right now. Problem is Bank of Japan interventions don't always work. Sometimes they do and if YCS breaks above $13.75, it would be a buy. This is a double leveraged fund, so it packs a bit more of a punch than the typical currency ETF. iShares MSCI Turkey Investable Market Index Fund

: With the Turkish lira flirting with all-time highs against the U.S. dollar, Turkey's central bank has bought $4 billion of its own currency in just two months. Problem is for Turkey its foreign reserves stood at only $85.65 billion at the end of September and that could be viewed as “limited firepower,” according to TheStreet.com. WisdomTree Dreyfus Brazilian Real ETF

: Brazil's voracious appetite for controlling inflation through interest rate hikes has hardly proven effective, but those interest rate boosts inflated the real. That's not good news for an export-driven economy, but the real has weakened substantially in recent weeks. Now Brazil's central bank is rumored to be considering rate cuts and that could make BZF an interesting short. The ETF is optionable and shortable. WisdomTree Emerging Currency Fund

: Home to currencies such as the Mexican Peso, Brazilian Real, Chilean Peso, South African Rand, Polish Zloty, Israeli Shekel, Turkish New Lira, Chinese Yuan, South Korean Won, Taiwanese Dollar, and Indian Rupee, CEW is one-stop shopping for those looking to get involved in the intervention game. “The threat — and reality — of new currency intervention will help support CEW,” writes Tim Seymour. Sounds good to us. CEW has found support at $20 and tack on another 8% or more before year end.