Why the Euro Is Ready to Rise

Investors aren't factoring in the good news in the euro zone, this strategist says.

The dollar is getting a big lift in the wake of the U.S. election, thanks to worries about the fiscal cliff and ongoing difficulties in Europe.

Don't get too used to it, says Elsa Lignos, senior currency strategist at RBC Capital Markets.

The election is "really a continuation of the status quo," she told CNBC, pointing to a the different parties controlling the House and Senate. "The key thing is how we address the fiscal cliff."

As the prospect looms of that draconian package of tax hikes and spending cuts, Lignos says the news flow from Europe should start to look relatively good - and lift the euro.

"The Greek vote today is important, taking out a short term risk," she points out, and there aren't any major cliffhangers on the horizon. At the same time, "the market still hasn't fully priced in the positive impact of Draghi's actions back in August." Sure, the euro rose, but that was in comparison to a weak dollar.

"Into year end, we should have a slightly better confluence of factors for the euro," Lignos says, and she expects it to reach 1.3200 by the end of the year.