This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

If You Have Euro-Backed Assets You'd Better Sell Them Right Now

Trends like this are alarming, to say the least.

There has been little progress in resolving the issue of chronic joblessness, the ECB faces some economic hurdles that will be difficult to overcome before the end of this year. The ECB has been pretty good in verbalizing both its concerns and the potential course of action as we move into the second half of the year.  

At this point, it looks relatively clear that the ECB will be looking to introduce new policy measures that are even more dovish and designed to stimulate the region's lagging economies. Stimulus programs generally lead to selling pressure in the related currency, so if we do see more announcements in this direction from the ECB, the euro is unlikely to find support from currency investors.  

Watching Currency ETFs

Of course, not all traders are focused on forex market but these trends can still be visualized using exchange-traded funds.  

Popular choices for these currencies can be found in the PowerShares DB US Dollar Index Bullish ETF (UUP) and Guggenheim CurrencyShares Euro Trust (FXE). Both of these ETFs track the values of their respective currencies against important global counterparts, so it might be easier for investors to watch for developments here rather than to watch for price moves in specific currency pairs.  

In any event, be on the lookout for further declines in the euro because the technical and fundamental pictures point toward a bearish outlook.  

A good portion of the eventual trend development will depend on the extent to which the ECB is willing to ease monetary policy and ignite the growth engine in the eurozone's struggling countries. There are still some real, systemic problems with the region because there is not much that resembles economic cohesion in the eurozone.  

As long as this continues to be the case, the ECB will be more likely to act in ways that will have a negative effect on the currency. Assets backed by the euro should underperform in the second half of the year.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read more: A Greek Lawyer Managing a Little-Known Investment Fund Wants to Buy Vivus for $640 Million

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs