For investors looking for momentum, Invesco DB US Dollar Index Bullish Fund (UUP Quick QuoteUUP - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 11.9% from its 52-week low of $25/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

UUP in Focus

The fund seeks to track changes, whether positive or negative, in the level of the Deutsche Bank Long USD Currency Portfolio Index - Excess Returnplus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. It charges 79 bps in fees and has an AUM of $374.2 million.

Why the Move?

Concerns over slowing global economic growth due to the coronavirus outbreak have started escalating. On Mar 9, stocks plunged and trading was halted for the first time in 23 years. Also, all major U.S. indices entered the bear market. However, President Trump has declared the coronavirus outbreak as a national emergency on Mar 13 which helped the stock market rebound to some extent.

Also, the Federal Reserve has opted for emergency rate cuts twice in less than two weeks. The central bank has trimmed rates to a target range of 0% to 0.25%. But, the increasing coronavirus cases are leading to travel bans as well as shutting down of schools, colleges, malls and restaurants. In such a scenario, dollar is playing its part as the world’s reserve currency and has gained the most on average over the past five days since 2008.

More Gains Ahead?

UUP has a Zacks Rank #3 (Hold). It seems like the fund will remain strong with a positive weighted alpha of 2.1, which gives cues of further rally.

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