WisdomTree Emerging Currency Strategy Fund (ARCA: CEW)

WisdomTree Emerging Currency Strategy Fund (ARCA:CEW), Quote.Headers.trade-ideas

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The Fund is an actively managed exchange traded fund (ETF) that seeks to achieve its investment objective by investing in short-term securities and instruments designed to provide exposure to the currencies and money market rates of selected emerging market countries.     The Fund seeks to provide exposure to currencies and money market rates from emerging and developing economies in three regions of the world: (i) Asia, (ii) Latin America and (iii) Europe, the Middle East and Africa. Within these regions, the Fund intends to invest in a subset of the following countries: Brazil, Chile, China, Colombia, Czech Republic, Hungary, India, Indonesia, Malaysia, Mexico, Nigeria, Peru, the Philippines, Poland, Romania, South Africa, South Korea, Taiwan, Thailand and Turkey. This list may change based on market developments. The Fund attempts to achieve exposure to the most liquid currencies within each of the three broad regions, while at the same time maintaining geographic and economic diversity across these regions. The specific set of currencies is generally selected annually, typically in July or August. The selected currencies are equally weighted in terms of U.S. dollar value. The Fund is rebalanced quarterly in order to maintain this equal weighting. In order to maintain geographic diversity, the Funds exposure to each of the three broad geographic regions is limited to 60% of its total asset value on the annual assessment date and at each quarterly rebalancing. More frequent rebalancing may occur in response to significant market events. A significant event might include, for example, market conditions that significantly disrupt liquidity or result in the reclassification of a currency (from emerging to developed, for example). Currencies that generally would be considered liquid may be ineligible for investment or dropped from the Fund as a result of government action or other market events if the Funds adviser believes doing so would be in the best interest of the Fund.   

Wisdomtree Floating Rate Treasury Fund

WisdomTree Emerging Currency Strategy Fund

Long Ideas

Emerging Markets

Emerging Market ETFs

Currency ETFs

Forex

Markets

Trading Ideas

ETFs

WisdomTree Dreyfus Emerging Currency Fund

PowerShares DB US Dollar Index Bullish Fund

An Ideal Anti-Dollar Play

News

Education

Wall Street Journal

Politics

Movers

Media

General

PowerShares DB US Dollar Index Bearish Fund

Winners And Losers From Trump&#39;s U.S. Dollar Comments

Bonds

Intraday Update

iShares JPMorgan USD Emerging Markets Bond Fund

PowerShares Emerging Markets Sovereign  Portfolio

Value In An Emerging Markets Bond ETF

CEWE STIFTUNG & CO KGAA by CEWE STIFTUNG & CO KGAA

CEWE Stiftung & Co KGaA

One certainty from the world of foreign currency this year is that the U.S. dollar is an epic dud. The PowerShares DB US Dollar Index Bullish Fund (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>), the tracking exchange-traded fund for the U.S. Dollar Index, is down slightly more than 10 percent year to date.
While the dollar has been flailing, even against the backdrop of two interest rate hikes by the Federal Reserve, other currencies are soaring and that includes emerging markets fare. The WisdomTree Emerging Currency Strategy Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>), which tracks a basket of developing world currencies, is higher by 10.6 percent year to date.
CEW &ldquo;seeks to achieve total returns reflective of both money market rates in selected emerging market countries available to foreign investors and changes to the value of these currencies relative to the U.S. dollar,&rdquo; <a href="https://www.wisdomtree.com/etfs/currency/cew">according to WisdomTree</a>.
<h3>Value In Emerging Markets Currencies</h3>
While emerging markets equities and currencies are soaring this year, prompting some <a href="https://www.benzinga.com/investing/">investors</a> to wonder if they have missed the rally, data suggest there is plenty of upside potential left in these previously lethargic asset classes.
&ldquo;Over the last several years, we&rsquo;ve spent a tremendous amount of time speaking about currency risk and analyzing trends in currency markets,&rdquo; said WisdomTree <a href="https://www.wisdomtree.com/blog/2017-09-07/assessing-value-in-emerging-market-currencies">in a recent note</a>. &ldquo;We have provided dedicated exposure to EM FX through the <a href="https://www.wisdomtree.com/etfs/currency/cew">WisdomTree Emerging Markets Currency Strategy Fund (CEW)</a> since 2009. In our view, the most significant (and intuitive) driver of EM FX is global demand. When businesses or investors seek to buy an asset or engage in trade in an emerging market, often they convert hard currency into local. If demand for a currency outstrips supply, a currency will tend to appreciate.&rdquo;
Strong emerging currencies can weigh on exporters, but are advantageous for commodities producers, of which there are plenty in the emerging world. Additionally, the weaker dollar helps ease the burden of external financing on dollar-denominated emerging debt.
<h3>A Diverse Lineup</h3>
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CEW features exposure to 16 emerging markets with weights ranging from 6 percent to 6.5 percent. Countries represented in the ETF include Russia, Turkey, Chile, China, Poland, Brazil and India, among others.
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&ldquo;Since 2016, commodity prices have rebounded while volatility in most global markets has declined,&rdquo; said WisdomTree. &ldquo;Over this period, countries that experienced the most significant devaluation have seen their currencies rebound sharply. On average, EM FX has appreciated by over 5% against the U.S. dollar during this period. In our view, bifurcating these two periods can be instructive on two fronts. First, it provides investors with an idea of the pain that EM FX can provide during a weak EM FX, strong U.S. dollar market. But secondarily, it also shows that there can be fairly dramatic deviations across a group of economies that are anything but homogenous.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10030939/compensation-for-globe-trotting-investors">International Income Opportunities</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10018151/traders-are-piling-into-this-india-etf">Traders Like This India ETF</a>

The PowerShares DB US Dollar Index Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>) is down 0.8 percent on Tuesday following <a href="http://www.benzinga.com/analyst-ratings/analyst-color/17/01/8911584/heres-what-to-expect-following-trumps-drug-pricing-robbe">surprising remarks</a> from President-elect Donald Trump. Trump told the <a href="https://www.benzinga.com/news/17/01/8911113/donald-trump-u-s-dollar-is-too-strong">Wall Street Journal</a> that the U.S. dollar is &ldquo;too strong&rdquo; and the fact that China&rsquo;s currency is &ldquo;dropping like a rock&rdquo; makes it difficult for U.S. companies to compete with Chinese companies.
<h3>Is Trump The End Of USD's Bull Run?</h3>
In the past, Trump has accused China of being a currency manipulator, and the implication that he will take on the issue once in office has the dollar trading down.
Traders concerned that Trump may usher in an end to the dollar bull market have plenty of investment options out there.
<h3>Investor Options</h3>
First, a falling U.S. dollar is typically good news for commodities. For example, the SPDR Gold Trust (ETF) (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) is up 1.3 percent on Tuesday.
Dollar weakness would mean relatively strong performance from international currencies as well. The WisdomTree Dreyfus Emerging Currency Fd (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>) provides exposure to eleven different international currencies.
In addition, investor can also buy shares of the inverse Powershares Db Us $ Index (NYSE: <a class="ticker" href="/stock/udn#NYSE">UDN</a>).
When it comes to stocks, U.S. companies with the most international business are best-positioned for a falling dollar. These companies include Wal-Mart Stores Inc (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>), McDonald&rsquo;s Corporation (NYSE: <a class="ticker" href="/stock/mcd#NYSE">MCD</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>).

Winners And Losers From Trump's U.S. Dollar Comments

This year has been another miserable one for emerging markets stocks, but some emerging markets bond exchange traded funds have been noticeably less worse. For example, the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>) is up more than 2 percent year-to-date while the rival iShares JPMorgan USD Emerging Markets Bond ETF (NYSE: <a class="ticker" href="/stock/emb#NYSE">EMB</a>) is lower by just 1.9 percent.

	However, with the WisdomTree Emerging Currency Strategy Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>) down more than 10 percent, the story is different for emerging markets bond ETFs denominated in local currencies. The specter of the Federal Reserve increasing interest rates coupled with speculation of additional credit downgrades throughout the developing world, a fate&nbsp;<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5748142/the-fed-dictates-whats-next-for-these-emerging-market-bond-et">recently suffered by Brazil</a>, are among the issued plaguing local currency bond funds.

	Those reasons and others underscore why an ETF such as the WisdomTree Emerging Markets Local Debt Fund (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>) is off 14 percent this year. For investors willing to apply the &ldquo;be greedy when others are fearful&rdquo; methodology, ELD could actually be offering up opportunity right now.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5860029/someone-is-nibbling-at-oil-services-etfs">Someone Is Nibbling At Oil Services ETFs</a>

	WisdomTree Research Director Jeremy Schwartz recently chatted with Chia-Liang Lian, head of emerging markets debt at Western Asset Management, the firm that manages the actively managed ELD in conjunction with WisdomTree.

	&ldquo;Lian noted the Fed&rsquo;s decision has been supportive of risky assets in EM, with sovereign bonds and local rates remaining firm. Additionally, the Fed&rsquo;s dovish tilt lent short-term support to the broader EM assets. Looking into the future, the uncertainty surrounding the Fed&rsquo;s liftoff will likely continue to linger and drive EM price action, but that is only one of a variety of factors the Western team is using to evaluate emerging market opportunities and risks,&rdquo; said Schwartz <a href="http://www.wisdomtree.com/blog/index.php/what-does-the-fed-delay-mean-for-emerging-markets/">in a note out</a>&nbsp;Wednesday.

	Though it allocates 9.5 percent of its weight to <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5827281/things-are-getting-junky-for-brazil-etfs">newly junk-rated Brazil</a>, ELD&#39;s credit quality is high as a combined 54.5 percent of the ETF&#39;s holdings are rated AAA, AA or A. Another 30.1 percent are rated BBB, which is still investment-grade.

	This one way of looking at ratings challenges potentially faced by ELD constituent countries. When adding up Brazil, Russia, South Africa and Turkey, roughly a quarter of ELD&#39;s geographic could be vulnerable to a&nbsp;<a href="http://www.benzinga.com/news/15/09/5834560/turkey-etf-could-be-next-to-be-stung-by-credit-downgrade">sovereign ratings downgrade</a>. The glass half-full view is that a much larger percentage of the ETF&#39;s weight is not at risk to a downgrade.

	With emerging currencies now pummeled to the point where traders can argue that most if not all of the bad news is priced in, an ETF such as ELD could be offering value.

	&ldquo;Lian believes that the most appealing segment of emerging market debt today&mdash;when evaluating EM sovereign debt in dollars, corporate debt or local currency sovereign market&mdash;is the local currency sovereign market,&rdquo; said Schwartz. &ldquo;He believes local currencies have become very attractive and potentially mark entry levels today, but he also reminded us to be thoughtful in navigating market cycles and that valuation are not the only consideration.&rdquo;

Here is the ETF Professor's ETF Watch List for Tuesday, September 3, 2013.

Keep an eye on the iShares MSCI Japan ETF (NYSE: <a class="ticker" href="/stock/ewj#NYSE">EWJ</a>).

The iShares Dow Jones US Telecom ETF (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>) should be in play.

Give the ProShares UltraShort Real Estate (NYSE: <a class="ticker" href="/stock/srs#NYSE">SRS</a>) a try.

The WisdomTree Australia Dividend ETF (NYSE: <a class="ticker" href="/stock/ause#NYSE">AUSE</a>) is worth a look.

Emerging markets plays of the day: Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>), iShares MSCI Brazil Capped ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>) and the Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: Market Vectors EM Local Currency Bond ETF (NYSE: <a class="ticker" href="/stock/emlc#NYSE">EMLC</a>).

Sector ETFs

Broad U.S. Equity ETFs

Short Ideas

Specialty ETFs

New ETFs

AUSE

Market Vectors Emerging Markets Local Currency Bond ETF

EMLC

iShares Dow Jones US Telecommunications Sector Index Fund

ETFs to Watch September 3, 2013 (EMLC, IYZ, SRS)

Here is the ETF Professor's ETF Watch List for Friday, August 23, 2013.

Give the Market Vectors Steel ETF (NYSE: <a class="ticker" href="/stock/slx#NYSE">SLX</a>) a look.

The SPDR EURO STOXX 50 ETF (NYSE: <a class="ticker" href="/stock/fex#NYSE">FEX</a>) looks interesting.

The PowerShares QQQ (NASDAQ: <a class="ticker" href="/stock/qqq#NASDAQ">QQQ</a>) will be in focus.

Emerging Markets plays of the day: iShares MSCI Brazil ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>), Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>) and the WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>).

Forex play of the day: WisdomTree Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: ProShares UltraShort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>).

Pre-Market Outlook

EGPT

ProShares UltraShort Lehman 20+ Year Treasury

ETFs to Watch August 23, 2013 (EWZ, QQQ, TBT)

Here is the ETF Professor's ETF Watch List for Wednesday, August 7, 2013.

The ProShares UltraShort Silver (NYSE: <a class="ticker" href="/stock/zsl#NYSE">ZSL</a>) should be in play.

Give the ProShares UltraPro Short QQQ (NASDAQ: <a class="ticker" href="/stock/sqqq#NASDAQ">SQQQ</a>) a look.

The Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) is one to watch.

Keep an eye on the iShares MSCI Italy ETF (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>).

Emerging markets plays of the day: ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>), the Direxion Daily India Bull 3X Shares (NYSE: <a class="ticker" href="/stock/indl#NYSE">INDL</a>) and the Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: WisdomTree Emerging Markets Local Debt ETF (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>).

Market Vectors ETF Trust Market Vectors Gold Miners

INDL

SQQQ

ETFs to Watch August 7, 2013 (FXP, GDX, ZSL)

Here is the ETF Professor's ETF Watch List for Thursday, July 18, 2013.

Try the iShares MSCI USA ETF (NYSE: <a class="ticker" href="/stock/eusa#NYSE">EUSA</a>).

Keep an eye on the WisdomTree Japan Hedged Equity Fund (NYSE: <a class="ticker" href="/stock/dxj#NYSE">DXJ</a>).

Give the WisdomTree SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/des#NYSE">DES</a>) a look.

Emerging markets plays of the day: iShares MSCI Mexico Investable Market ETF (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>), Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>) and the iShares MSCI Thailand ETF (NYSE: <a class="ticker" href="/stock/thd#NYSE">THD</a>).

Forex play of the day: WisdomTree Emerging Markets Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: SPDR Barclays International Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/bwx#NYSE">BWX</a>).

WisdomTree Trust WisdomTree SmallCap Dividend

WisdomTree Trust Japan Total Dividend Fund

EUSA

iShares MSCI Thailand Investable Market Index Fund

ETFs to Watch July 18, 2013 (BWX, DXJ, EWW)

Here is the ETF Professor's ETF Watch List for Thursday, June 20, 2013.

The ProShares UltraShort Gold (NYSE: <a class="ticker" href="/stock/gll#NYSE">GLL</a>) looks good.

The iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>) is in technical trouble.

Give the iShares Dow Jones Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>) a try.

Keep an eye the First Trust ISE-Revere Natural Gas Index Fund (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>).

Emerging markets plays of the day: ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>), Direxion Daily Russia Bear 3X Shares (NYSE: <a class="ticker" href="/stock/russ#NYSE">RUSS</a>) and the iShares MSCI South Korea Index Fund (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>).

Currency play of the day: WisdomTree Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: iShares Barclays 20+ Year Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>).

iShares Dow Jones Select Dividend Index Fund

First Trust ISE-Revere Natural Gas Index Fund

RUSS

iShares Trust Barclays 20+ Year Treasury Bond Fund

ETFs to Watch June 20, 2013 (EWI, FCG, TLT)

Here is the ETF Professor's ETF Watch List for Friday June 14, 2013.

	The Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) looks terrible.

	Keep an eye on the iShares MSCI Japan Index Fund (NYSE: <a class="ticker" href="/stock/ewj#NYSE">EWJ</a>).

	Let's see if the bounce in the iShares MSCI Pacific ex-Japan Index Fund (NYSE: <a class="ticker" href="/stock/epp#NYSE">EPP</a>) is for real.

	Give the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) a look.

	Emerging markets plays of the day: iShares MSCI Chile Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ech#NYSE">ECH</a>), Global X FTSE ASEAN 40 ETF (NYSE: <a class="ticker" href="/stock/asea#NYSE">ASEA</a>) and the Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>).

	Forex play of the day: WisdomTree Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

	Bond play of the day: WisdomTree Emerging Markets Local Debt ETF (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>).

ASEA

ETFs to Watch June 14, 2013 (ELD, EPP, XLK)

Currency investing is not the easiest endeavor, but ETFs should make it a bit easier, right? Maybe not. Although trading forex pairs is easily quantified with a winning and losing currency on each side of the pair, things have turned tricky at the ETF level.

	BlackRock (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>), the world's largest ETF sponsor, recently said there is $4.3 billion invested in various currency ETFs and ETNs, but investors pulled $55 million from those products last month, bring the year-to-date outflows to $79 million.

	ETFs that track struggling currencies such as the Australian dollar and plunging emerging markets currencies would seem to be obvious offenders in the current environment, but S&amp;P Capital IQ offered up a less-than-encouraging assessment of the U.S. Dollar Index in addition to emerging markets fare.

	"According to Mark Arbeter, S&amp;P Capital IQ's Chief Technical Strategist, the U.S. Dollar Index continues to fall after hitting some tough overhead supply from its prior high from July 2012 in the 83 to 84 region. Arbeter notes that since the closing high of 83.22 at the end of March and the intraday peak of 83.49 in early April, the index has dropped to just below the 81 level, the lowest it has been since February," S&amp;P Capital IQ said in a new research note.

	A look at the PowerShares DB US Dollar Index Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>), which is the Dollar Index tracking ETF, shows S&amp;P Capital IQ might be on to something. Despite savage repudiation of riskier developed market currencies and emerging markets currencies of all stripes, UUP has lost 3.3 percent in the past month and <a href="http://www.finviz.com/quote.ashx?t=uup">looks poised to test support at $21.60</a>.

	"Commitment of Traders (COT) data continues to warn that the greenback may see additional profit taking, according to S&amp;P Capital IQ. Commercial hedgers remain net short by a large margin. At the same time, large and small speculators remain very bullish toward the dollar with respect to their futures positions. Many times in the past, this combination of 
	COT data has led to decent-sized pullbacks, according to Arbeter," said S&amp;P in the note.

	The research firm was equally cautious about the WisdomTree Dreyfus Emerging Currency (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>), an ETF that tracks 15 developing world currencies.

	"Fears of a peak in global monetary stimulus have led to profit taking in many popular higher-yielding emerging market currency carry trades that have benefited from extreme central bank policy accommodation, leading to a broad based sell-off in EM assets from stocks to bonds," said S&amp;P analyst Alec Young.

	Of course, there is another side to the story. UUP has seen inflows of almost $86.4 million over the past month, while its bearish equivalent, the PowerShares DB US Dollar Index Bearish (NYSE: <a class="ticker" href="/stock/udn#NYSE">UDN</a>) has not received any new capital, <a href="http://www.invescopowershares.com/flows/">according to PowerShares flow data</a>.

	As for CEW, it can be argued that investors are treating emerging currencies, particularly the Asian ones, as if today's environment's resembles the days of the Asian and Russian defaults. A case can be made <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3674201/the-fall-of-em-currency-etfs-too-far-too-fast">that emerging currencies have been beaten up too much too rapidly</a> and a buying opportunity may be near.

	One day is just one day, but it is worth noting CEW gained 0.74 percent Thursday on volume that was more than seven times the daily average.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Technicals

After-Hours Center

S&P Not Fussed on Dollar, EM Currency ETFs

A suddenly strong U.S. dollar is claiming rival currency victims throughout the emerging world. Earlier this week, the Indian rupee touched a record low against the greenback. Forwards on the Indonesian rupiah fell to multi-year lows and the currency has weakened so dramatically, so rapidly in Southeast Asia's largest economy that the <a href="http://www.channelnewsasia.com/news/business/international/indonesia-raises-key/709072.html">central bank there raised interest rates today</a>.

	Apparently, emerging markets currencies do not like the May-June time frame. In 2012, May was the worst month of that year for developing world currencies as investors bid the dollar up due to concerns about Europe's sovereign debt crisis. In fact, last year's decline in emerging market currencies was, at the time, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2706528/brics-other-problem-sliding-currencies">the worst since 1998</a> during the Asian sovereign debt crisis.

	It is hard to say things look any better this year. Actually, the situation might look worse. For example, WisdomTree Indian Rupee Fund (NYSE: <a class="ticker" href="/stock/icn#NYSE">ICN</a>), which tracks a currency <a href="http://www.benzinga.com/news/13/05/3571331/dont-you-forget-about-rupee-etfs">some view as undervalued relative to the dollar</a>, has tumbled five percent in the past month.

	But before investors rush to further repudiate bahts, pesos, reals, rupees, rupiah and others, they may want to consider if the punishment these currencies have recently endured is too much too soon.

	"In May 2013, we believe investors should not confuse a broadly stronger dollar with an anti-EM position," said WisdomTree Portfolio Manager Rick Harper in a new research note. "With some positive economic surprises in the U.S. and some concerns in emerging market countries such as South Africa and Turkey, we believe the market has moved too far too fast."

	There might be something to that assertion. Consider the fate of the WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>), an ETF comprised of "Mexican Peso, Brazilian Real, Chilean Peso, Colombian Peso, South African Rand, Polish Zloty, Russian Ruble, Turkish New Lira, Chinese Yuan, South Korean Won, Indonesian Rupiah, Indian Rupee, Malaysian Ringgit, Philippine Peso and Thai Baht," <a href="http://www.wisdomtree.com/etfs/fund-details-currency.aspx?etfid=70">according to WisdomTree</a>.

	CEW allocates weights to those currencies ranging from 6.38 percent to the rand at the bottom to 6.95 percent to the zloty at the top. In other words, this is basically an equal-weight ETF and equal-weight does not always work when a significant percentage of the fund is being taken task.

	No one should feel sorry for the ETF, but this is what CEW has had to deal with in recent weeks: Labor strife in South Africa, anti-government protests in Turkey, the baht and Philippine peso falling to new 52-week lows against the dollar, the rupee's record low and the Brazilian real <a href="http://www.ft.com/intl/cms/s/0/26e10e36-d3ba-11e2-95d4-00144feab7de.html#axzz2W39ro4Iz">hitting a four-year low</a>.

	Those currencies combine for about 38 percent of CEW's weight and they have all been hampering the fund at the same time, a rare set of circumstances, but one that might spell opportunity.

	"Ultimately, we believe this moderation in performance could be a long-term buying opportunity for income-minded investors. Although this time may indeed be different, we believe that allocating a portion of investor portfolios to emerging market currencies and debt could serve as a means of diversifying risk and enhancing yield over the longer term," <a href="http://www.wisdomtree.com/blog/index.php/emerging-market-currencies-dissecting-may-performance/">said Harper</a>.

	Before running to sell emerging markets currencies right now, remember that after June 2012, 11 of 18 major developing world currencies finished the year noticeably higher. CEW gained almost 10 percent from June 2012 through January 2013.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Events

Global

The Fall of EM Currency ETFs: Too Far Too Fast?

Here is the ETF Professor's ETF Watch List for Thursday January 24, 2012.

The Direxion Daily Technology Bear 3X Shares (NYSE: TECS) is certainly worth a look.

Index play of the day: ProShares UltraShort QQQ (NYSE: <a class="ticker" href="/stock/qid#NYSE">QID</a>).

The Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) continues to look bearish.

Emerging markets plays of the day: ProShares UltraShort MSCI Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>), Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>) and the iShares MSCI South Africa Index Fund (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: WisdomTree Asia Local Debt ETF (NYSE: <a class="ticker" href="/stock/ald#NYSE">ALD</a>).

ETFs to Watch January 24, 2013 (ALD, GDX, TECS)

Even with a spate of interest rate cuts throughout the developing world in 2012, investors embraced bonds denominated in emerging markets currencies. Despite slack performances by major emerging markets currencies such as the Brazilian real and the South African rand, 2012 was a sturdy year for developing world currencies, a trend that could continue this year in the eyes of one portfolio manager.

With the stage set for 2013 to be another year full of monetary easing by developed world central banks, emerging markets currencies have tailwinds behind them, according to WisdomTree Portfolio Manager Rick Harper.

"We believe 2013 will be another year of developed market central bank activism that could provide positive tailwinds for EM currency investors," <a href="http://www.wisdomtree.com/blog/index.php/year-end-currency-performance-and-a-look-forward-to-2013/?elqCampaignId=278">said Harper in a research note</a>. "After a quick turnaround in risk sentiment in the first few weeks of 2013, investors have done well by having exposure to most emerging market currencies to start the calendar year."

Previously <a href="http://www.benzinga.com/markets/bonds/13/01/3229035/this-local-debt-etf-is-an-economic-growth-play">highlighted by Harper</a> as an avenue for investors to participate in fast-growing Asian economies, the WisdomTree Asia Local Debt ETF (NYSE: <a class="ticker" href="/stock/ald#NYSE">ALD</a>) is up about half a percent to start 2013.

ALD is a combination of developed and emerging markets as Australian and New Zealand issues are mixed with bonds denominated in the local currencies of South Korea, Malaysia, Indonesia, Philippines, Thailand, India, China, Hong Kong, Singapore, Taiwan. Faster GDP growth could bolster Asian currencies this year, according to Harper.

"Historically, Asian currencies have been less volatile than their Latin American or European counterparts," he said in the note. "In uncertain market environments, this has been a benefit for investors. Many economists predict that Asian economies ex-Japan will grow at faster rates in 2013 than Latin America or Europe. Faster growth rates and increased economic output could provide a boost for their currencies in 2013."

Coming off two consecutive years of significant losses against the U.S. dollar, the Brazilian real could bounce back against the greenback if Latin America's largest economy posts better-than-expected growth figures. However, an improving U.S. economy and rallying equity markets here could continue to add to the <a href="http://www.benzinga.com/markets/bonds/13/01/3267133/got-pesos-use-these-etfs-for-attractive-mexican-bonds">bull case for Mexican bonds</a>.

"In Latin America, another currency poised to continue its upward trend in 2013 could be the Mexican peso," said Harper. "In an environment where the U.S. economy continues to grow at faster rates than developed economies in Europe, Mexico could continue to be a net beneficiary."

ETFs with significant exposure to Mexican debt include the Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>) and the SPDR Barclays Emerging Markets Local Bond ETF (NYSE: EDND). Investors looking for a direct play on the peso itself via an ETF should consider the WisdomTree Emerging Currency Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

CEW is nearly an equal weight product as it offers exposure to 15 emerging market currencies with weights ranging from 6.45 percent for the South African rand to 6.86 percent for the Russian ruble. Mexico's peso accounts for 6.75 percent of CEW's weight. 

CEW has only posted a modest 0.09 percent year-to-date gain, but if developing world central banks eschew Bank of Japan, Federal Reserve-style easing this year, the fund could offer upside to investors.

"With EM central banks largely on hold, the absence of stimulus from them could remove a potential cause of currency weakness that dampened returns in 2012," noted Harper. "For investors that are still underexposed to international currency and fixed income, 2013 could prove to be a great year for gaining exposure to faster-growing economies around the world."

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Econ #s

Economics

BONO

EM Currencies Have Tailwinds

Here is the ETF Professor's ETF Watch List for Thursday, January 10, 2013. 

The Guggenheim Solar ETF (NYSE: <a class="ticker" href="/stock/tan#NYSE">TAN</a>) just keeps on soaring.

Can the Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>) finally get through $17?

The First Trust NYSE Arca Biotech Index Fund (NYSE: <a class="ticker" href="/stock/fbt#NYSE">FBT</a>) is on fire as well.

Keep an eye on the PowerShares DB Commodity Index Tracking ETF (NYSE: <a class="ticker" href="/stock/dbc#NYSE">DBC</a>).

Emerging markets plays of the day: Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>), Global X FTSE ASEAN 40 ETF (NYSE: <a class="ticker" href="/stock/asea#NYSE">ASEA</a>) and the iShares MSCI Brazil Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: Market Vectors High-Yield Muni ETF (NYSE: <a class="ticker" href="/stock/hyd#NYSE">HYD</a>).

PowerShares DBmmodity Index Optimum Yield Diversified Fund

First Trust NYSE Arca Biotechnology Index Fund

Market Vectors High Yield Municipal Index ETF

ETFs to Watch January 10, 2013 (CEW, TAN, XLF)

Here is the ETF Professor's ETF Watch List for Thursday December 6, 2012.

The PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>) looks appealing. 

Related play: Direxion Daily Gold Miner Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>).

The Global X FTSE Greece 20 ETF (NYSE: <a class="ticker" href="/stock/grek#NYSE">GREK</a>) will definitely be in play.

Keep an eye on the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>).

Emerging markets plays of the day: Guggenheim China Small Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>), Market Vectors Indonesia Small-Cap ETF (NYSE: <a class="ticker" href="/stock/idxj#NYSE">IDXJ</a>) and the iShares MSCI Chile Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/ech#NYSE">ECH</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: PIMCO Total Return ETF (NYSE: <a class="ticker" href="/stock/bond#NYSE">BOND</a>).

BOND

DUST

GREK

IDXJ

ETFs to Watch December 6, 2012 (CEW, GREK, XLK)

Here is the ETF Professor's ETF Watch List for Wednesday November 28, 2012:

Again, the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) looks poised for downside.

Defensive play of the day: iShares S&amp;P Global Consumer Staples Index Fund (NYSE: <a class="ticker" href="/stock/kxi#NYSE">KXI</a>).

The U.S. Natural Gas Fund (NYSE: <a class="ticker" href="/stock/ung#NYSE">UNG</a>) might be primed for some upside after a two-day pullback.

Emerging markets plays of the day: Global X FTSE Argentina 20 ETF (NYSE: <a class="ticker" href="/stock/argt#NYSE">ARGT</a>), iShares MSCI South Korea Index Fund (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>).

Forex play of the day: WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>).

Bond play of the day: ProShares UltraShort 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/tbt#NYSE">TBT</a>).

ARGT

iShares S&P Globalnsumer Staples Sector Index Fund

ETFs to Watch November 28, 2012 (CEW, DEM, KXI)

Tuesday is Election Day. Political passions and tensions are running high in the U.S. and market participants are still trying to figure out what outcome is best for stocks. Conventional wisdom has been that an upset of President Obama by Republican challenger Mitt Romney coupled with the GOP regaining control of the Senate could spark a risk on rally.

That does not mean a risk on rally cannot happen if the President is reelected. Along those lines, some market observers note stocks really do not care who resides at 1600 Pennsylvania Ave. With the <a href="http://www.benzinga.com/markets/bonds/12/10/3018570/find-shelter-from-the-fiscal-cliff-with-these-etfs">fiscal cliff looming</a>, it may not matter who wins this election unless he (and Congress) can come together to avert that treacherous scenario. 

In a perfect world for the bulls, stocks will rally following this election, regardless of outcome and the fiscal cliff will be averted. Should all that happen, these are some of the ETFs investors will want to be involved with.

iShares Dow Jones U.S. Aerospace &amp; Defense Index Fund (NYSE: <a class="ticker" href="/stock/ita#NYSE">ITA</a>)
Or the PowerShares Aerospace &amp; Defense Portfolio (NYSE: <a class="ticker" href="/stock/ppa#NYSE">PPA</a>). Or the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE: <a class="ticker" href="/stock/xar#NYSE">XAR</a>). These ETFs are the quintessential "avoids" under a fiscal cliff scenario on the expectation that defense spending will be slashed.

Conversely, these funds are viewed as buys assuming Romney wins and the Republicans gain control of the Senate. That might just be what these ETFs are starting to price in. As <a href="http://blogs.barrons.com/focusonfunds/2012/11/06/defense-fund-rockets-to-four-year-high-romney-rally/">Barron's notes</a>, PPA touched its highest levels since June 2008 today. For its part, ITA is up nearly two percent and trading less than $1 away from its 52-week high.

Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>)
Or any of VIG's competitors such as the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>) and the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>). Dividend stocks and ETFs are often viewed as being less volatile than non-dividend payers and that is true, but the fiscal cliff would mean the loss of Bush-era dividend tax cuts. 

Expired tax reductions equal tax increases. The resulting fear is that fewer companies will be inclined to pay or raise dividends if the dividend tax rate jumps due to the fiscal cliff. How dividend ETFs trade immediately following the election could be a tell regarding the market's view on the odds of the fiscal cliff taking place. If Mr. Market likes the result of today's election, expect dividend ETFs to participate in, and perhaps lead, a risk on rally.

WisdomTree Dreyfus Emerging Currency Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>)
Currency ETFs such as the PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>) and the PowerShares DB Dollar Bearish (NYSE: <a class="ticker" href="/stock/udn#NYSE">UDN</a>) could easily put in some exaggerated moves immediately following the election. However, the impact of U.S. politics on emerging markets currency is could be muted. Bank of America-Merrill Lynch <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/11/3062232/strong-peso-could-bolster-bull-case-for-the-philippines">said as much</a>, saying the impact on developing markets currencies will be "neutral."

That is good news for CEW, which is an ETF that would likely benefit from risk on rally. CEW has almost $280 million in assets under management. Consistent currencies include the following: Mexican Peso, Brazilian Real, Chilean Peso, Colombian Peso, South African Rand, Polish Zloty, Russian Ruble, Turkish New Lira, Chinese Yuan, South Korean Won, Indonesian Rupiah, Indian Rupee, Malaysian Ringgit, Philippine Peso and Thai Baht. 

PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>)
There are several reasons why an emerging markets sovereign debt ETF such as the PowerShares Emerging Markets Sovereign Debt Portfolio will make for a useful election play. First, PCY and its rivals are income funds. PCY pays a monthly dividend, so it could be a winner in a "missed fiscal cliff" scenario.

Second, a legitimate risk on rally would ignite emerging markets ETFs. The good news is PCY is already in rally mode, having gained almost 19 percent year-to-date including dividends paid. Third, as a bond ETF, PCY is not overly volatile. The ETF's year-to-date volatility is just 4.9 percent.

Finally, PCY is not intimately correlated to the S&amp;P 500. PCY has a three-year correlation to the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) of 0.69, <a href="http://www.sectorspdr.com/correlation/">according to State Street data</a>. Said another way, dollar-denominated emerging markets bonds, of which PCY is comprised, have been less correlated to the benchmark index than the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and the Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) have been.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Dividends

Barron's

iShares Dow Jones US Aerospace & Defense Index Fund

PowerShares ETF Trust Aerospace & Defense Portfolio

For a Post-Election Risk On Rally, Buy These ETFs

Each member of the BRICS quintet has its own batch of specific economic problems.

In China, inflation remains pesky, while investors are concerned about the ability of policymakers to engineer an economic soft landing. At the same time, Russian equities have been ravaged by the rapid decline in oil prices.

Brazil is contending with <a href="http://www.benzinga.com/media/barrons/12/06/2697237/below-50-problems-await-brazil-etf-ewz">declining oil prices, inflation and China's economic malaise</a>. China is Brazil's largest trading partner. South Africa has an unemployment rate that is uncomfortably high, while India's <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2658878/india-one-foot-out-the-door-of-the-brics-house-epi-pin-s">economic problems are almost too numerous to name</a>.

Yet, all of the BRICS share one thing in common: Plunging currencies. In fact, the decline in BRIC currencies is the worst since at least 1998, <a href="http://www.bloomberg.com/news/2012-06-24/brics-biggest-currency-depreciation-since-1998-to-worsen.html">according to Bloomberg</a>. Stephen Jen, a managing partner at hedge fund SLJ Macro Partners LLP, said the currencies of Brazil, India and Russia and could tumble another 15 percent by the end of this year.

That is not an inviting forecast. 

Here are the ETFs that could suffer the most. Investors should note an ETF tracking the Russian ruble was shuttered earlier this year:

WisdomTree Dreyfus Brazilian Real Fund (NYSE: <a class="ticker" href="/stock/bzf#NYSE">BZF</a>)
BZF tracks "both money market rates in Brazil available to foreign investors and changes in value of the Brazilian Real relative to the U.S. dollar," according to the WisdomTree's Web site. Well, the U.S. dollar has been taking the real to the woodshed. In the past 90 days, BZF has slid 11.2 percent while the PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>) has climbed almost four percent.

The real touched a month-low against the dollar Wednesday as global investors remain concerned that the Brazilian government has no tricks up its sleeve to boost economic growth and stem the currency's slide. BZF's vulnerability would surge if the fund falls below $18.

WisdomTree Dreyfus South African Rand Fund (NYSE: <a class="ticker" href="/stock/szr#NYSE">SZR</a>)
There is a good news/bad news when it comes to investing in South Africa. The country is by far Africa's largest economy and is home to bountiful precious metals resources. Cautionary tales exist in the form of a <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2558276/beyond-eza-alternative-south-africa-etf-plays">political situation that is viewed as volatile and an unemployment rate north of 20 percent</a>.

The WisdomTree Dreyfus South African rand is thinly traded at less than 1,400 shares per day on average, but that has not stopped the fund from falling 7.7 percent in the past three months.

WisdomTree Dreyfus Indian Rupee Fund (NYSE: <a class="ticker" href="/stock/icn#NYSE">ICN</a>)
With the specter of a possible move to junk status <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2658878/india-one-foot-out-the-door-of-the-brics-house-epi-pin-s">hanging over India</a> it is not surprising that there is speculation that Asia's third-largest economy could be booted from the BRICS quintet.

Amid rising deficits, slowing GDP growth and rising concerns by global investors that the Indian government has been largely ineffective in dealing with the country's faltering economic fundamentals, it is not surprising the rupee has been battered. The WisdomTree Dreyfus Indian Rupee Fund has lost 8.1 percent in the past three months.

WisdomTree Dreyfus Chinese Yuan Fund (NYSE: <a class="ticker" href="/stock/cyb#NYSE">CYB</a>)
The WisdomTree Dreyfus Chinese Yuan Fund deserves this much credit: It has not been nearly as bad as the other ETFs highlighted here. There is some anecdotal evidence to support the theory that the yuan may be in for some near-term declines. <a href="http://online.wsj.com/article/SB10001424052702304830704577493190295498890.html">The Wall Street Journal reported</a> that Chinese exporters are starting to hold dollars longer because they fear the yuan's ascent will be limited.

WisdomTree Dreyfus Emerging Currency Fund (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>)
CEW's lineup is comprised of the Mexican peso, Brazilian real, Chilean peso, South African rand, Polish zloty, Russian ruble, Turkish New Lira, Chinese yuan, South Korean won, Indonesian rupiah, Indian rupee, and Malaysian ringgit with the BRICS currencies accounting for about 40% of the fund's overall weight.

Given CEW's broad exposure beyond the BRICS, it is arguably a safer play than say BZF or ICN. CEW would also make for the better emerging markets currency ETF rebound candidate in a market environment that would support such a move. The problem is that environment does not exist today.

For more on emerging markets ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2610528/enter-the-bear-for-these-em-etfs-epi-ewt-gur">here</a>.

Commodities

WisdomTree Dreyfus South African Rand Fund

BRICS' Other Problem: Sliding Currencies

For the bulk of 2011, the currency conversation has revolved around three of the majors: The U.S. dollar, the euro and the yen. The euro's deal is widely known at this point. Problems with the PIIGS have imperiled the common currency, almost guaranteeing the Euro Zone will be lighter by a member or two sometime in the not-too-distant future.

On the other hand, a strong yen has imperiled Japan's exporters, but given investors at least one other option that fits the bill as a “safe haven” currency. And despite massive debt problems of our own and a lower credit rating here in the U.S., the greenback will likely end 2011 with its safe haven status well in tact. 

Obviously, there's much more to the forex game than the “big three,” so let's look at the currency ETFs investors need to know about for 2012.

ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>):
Since the ProShares UltraShort Euro is a leveraged ETF, we don't advise making a long-term investment out this fund, but it should be a regular a part of an active trader's 2012 trading plan. Morgan Stanley sees more pain for the Euro ahead with a recommendation to sell EUR/USD at 1.3670 – target 1.2100. There you have it.

CurrencyShares British Pound Sterling Trust (NYSE: <a class="ticker" href="/stock/fxb#NYSE">FXB</a>):
Oh, sterling. Things aren't looking so sterling, are they? At least not a technical basis. The chart of the CurrencyShares British Pound Sterling Trust shows a series of lower highs and lower lows and if the the ETF breaks support at $154, the party could be over. Morgan Stanley says sell GBP/USD at 1.5830 – target 1.4200.

CurrencyShares Canadian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxc#NYSE">FXC</a>):
This isn't a call on Canada at large as much as it is stating the obvious: The loonie is a commodity currency and the commodity it's linked to is oil. For those looking for oil exposure that isn't a direct greenback play, the Canadian dollar makes sense.

WisdomTree Dreyfus Brazilian Real ETF (NYSE: <a class="ticker" href="/stock/bzf#NYSE">BZF</a>):
The WisdomTree Dreyfus Brazilian Real ETF isn't the most heavily traded forex ETF out there, but it is the one fund that will get you direct exposure to this high-beta emerging market currency. There are a some macro factors at play with the real. Europe's sovereign debt crisis has created diminished appetite for riskier currencies. 

If China's economy slows further, that means demand for Brazilian commodities will slow along with it. After consistently raising rates, Brazil's central bank looks poised to start lowering interest rates. None of those scenarios are good for the real.

CurrencyShares Mexican Peso Trust (NYSE: <a class="ticker" href="/stock/fxm#NYSE">FXM</a>):
The Mexican peso has been punished on the way down this year and lazy on any rebounds, making for a disappointing year. More trouble could be on the way, as Morgan Stanley says: “...with no signs of a near-term respite from Europe debt concerns, we suspect that further weakness is in store for MXN through year-end and into 1Q12.”

CurrencyShares Swedish Krona Trust (NYSE: <a class="ticker" href="/stock/fxs#NYSE">FXS</a>):
A large of the Swedish investment thesis is that the country is NOT a Euro Zone member, but that has not insulated the CurrencyShares Swedish Krona Trust from some declines of its own over the past few months. The krona's fundamentals are strong. Sweden's economy is good compared to many others in Europe. The government has no need for foreign funding. And Sweden has excellent credit and an account surplus. Maybe FXS will outperform next year.

CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>):
The chart of the CurrencyShares Swiss Franc Trust is not attractive at all when considering the ETF was trading near $140 back in August and is now under $108. FXF could be offering some value again as Morgan Stanley sees the franc outperforming the U.S. dollar and the euro through the second half of next year.

WisdomTree Dreyfus Emerging Currency ETF (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>):
The WisdomTree Dreyfus Emerging Currency ETF currently rests about 10% of its highs for the year, but bigger things could be in store in 2012 as the credit ratings of more emerging markets improve. The ETF is home to the following currencies: 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. 

Nearly 42% of CEW's weight is devoted to Asian currencies and the ETF has a distribution yield of almost 4%. That's a lot better than you'll get with a money market account.

PowerShares DB G10 Currency Harvest ETF (NYSE: <a class="ticker" href="/stock/dbv#NYSE">DBV</a>):
DBV is the carry trade ETF as it looks to short the lowest interest rate G10 currencies while being long the highest interest rate currencies in the 10-country group. That group is as follows: U.S. Dollars, Euros, Japanese Yen, Canadian Dollars, Swiss Francs, British Pounds, Australian Dollars, New Zealand Dollars, Norwegian Krone and Swedish Krona. For example, DBV is short the U.S. dollar and yen, but long the Australian and New Zealand dollars.

CurrencyShares Australian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxa#NYSE">FXA</a>):
Speaking of the Australian dollar, there is the CurrencyShares Australian Dollar Trust, an ETF that is almost as volatile as the currency it tracks. The Aussie dollar is the epitome of a high-beta commodity currency. It thrives when the risk on trade is on. When risk on is off, the Aussie dollar languishes. Morgan Stanely sees external, not domestic factors driving the Aussie dollar next year.

ProShares UltraShort Yen (NYSE: <a class="ticker" href="/stock/ycs#NYSE">YCS</a>):
By including YCS on this list, we're not saying short the yen. Rather, look to short YCS from time to time because the Bank of Japan is all but out of options for weakening the yen .

PowerShares DB Dollar Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>):
It's not the dollar is so great, it's that it's less bad than many of the other currency majors. It's probably the one true safe haven left as well. Want a risk off trade? Here it is, folks. 

“In general, when the rest of the world is not outperforming, ‘bad news' in the US will be more supportive for USD in the flight to safety. We believe that USD can only reverse trend when global conditions improve, which we do not expect to see until end-2012 and 2013,” Morgan Stanley said in a note.

Analyst Color

Futures

Price Target

Previews

Analyst Ratings

CurrencyShares British Pound Sterling Trust

Twelve For '12: Currency ETFs to Watch In The New Year

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 (NYSE: <a class="ticker" href="/stock/ycs#NYSE">YCS</a>):
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 (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>):
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 (NYSE: <a class="ticker" href="/stock/bzf#NYSE">BZF</a>):
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 (NYSE: <a class="ticker" href="/stock/cew#NYSE">CEW</a>):
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.

iShares MSCI Turkey Investable Market Index Fund

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WisdomTree Emerging Currency Strategy Fund

Overview

WisdomTree Emerging Currency Strategy Fund (ARCA:CEW), Quote.Headers.trade-ideas