U.S. Inflation Remains Low (CEW, UDN)

U.S. Inflation continues to be very low. According to

, Consumer Price Index rose by 0.4% in April, as was widely expected. In March, CPI rose by 0.5%. Core CPI, which excludes highly volatile commodities like oil and food, was up by 0.2%, again within market expectations. In March, Core CPI rose by 0.1%. Low inflation will allow Fed to maintain its quantitative easing policies in order to boost the growth of the economy. As many analysts believe other central banks, above all ECB, will start increasing its interest rates soon, the greenback might start to lose value. Traders who believe low inflation will lead to low interest rates and weak dollar will be interested in PowerShares DB USD Bullish

and WisdomTree Dreyfus Emerging Currency Fund

. PowerShares might seem like a good deal since it invests in major currencies, like the euro. Some analysts believe other major central banks, above all ECB, will start raising their interest rates before Fed. WisdomTree Dreyfus concentrates on investing in the currencies of developing countries. Developing countries have been at the center of global recovery and it is possible that the strength of their economies will translate into strong currencies.