Sell Euros Before ECB Rate Move, Strategist Says
Traders are so certain the European Central Bank will raise interest rates tomorrow that any indication of dovishness will hurt the euro, this strategist says.
Todd Gordon, co-head of research and trading and Aspen Trading Group, is nervous about the euro. "A lot has been priced into this (European Central Bank) decision," he told CNBC's Erin Burnett, and if President Jean Claude Trichet flinches on inflation in any way, it could hurt the single currency.
In Switzerland, meanwhile, stronger than expected inflation data could push the central bank to be more hawkish, Gordon said. He recommends selling the euro against the Swiss franc ahead of the ECB rate decision, looking for a move to 1.30 and putting on a stop loss at 1.35.
Take a look at the discussion right here.
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