For investors seeking momentum, Invesco DB US Dollar Index Bullish ETF (UUP Quick QuoteUUP - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 18.2% from its 52-week low of $24.70 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

UUP in Focus

The underlying Deutsche Bank Long USD Currency Portfolio Index - Excess Return is a rules-based index composed solely of long U.S. Dollar Index futures contracts that trade on the ICE futures exchange. The ETF charges 78 basis points in fees.

Why the Move?

The Fed will likely hike rates by 50 basis points in September amid higher inflation and growing recession worries, according to economists in a Reuters poll. Traders are now pricing in around a 46.5% chance of a 75-basis-point rate hike in September and a 53.5% chance of a 50-bp increase following recent hawkish remarks from Fed officials. This has boosted the strength of the greenback.

More Gains Ahead?

The fund has a positive weighted alpha of 18.60. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.