It's a big day for relief, now that Congress has teetered back from the brink of the 'fiscal cliff,' and the currency markets are no exception. The euro, for one, is rallying, despite a disappointing report on euro zone manufacturing.
The contradiction is not sitting well with Jens Nordvig.
Nordvig, who is global head of currency strategy at Nomura Securities, says Europe may no longer be facing sudden disaster, but the new year will still bring significant challenges.
At the moment, "i think there's a risk compression trade that's going on. You can see it in the euro bonds, compressing even further. That's driving the euro higher," Nordvig told CNBC's Simon Hobbs.
But while the euro may strengthen for a bit, Nordvig expects it to move gradually lower through the year.
So Nordvig wants to wait for the euro to push higher, and then sell it against the dollar at 1.3400. He recommends a stop at 1.3600 and he is looking for a move to 1.2900.