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How to Trade Washington's Debt-Ceiling Gridlock

Friday, 22 Jul 2011 | 4:52 PM ET

Phew! That was a nice relief rally in the euro. But now that it's history, look elsewhere for your next trade.

The deal to bail out Greecegave the euro a nice lift into Friday morning. But since then, investors have started to focus on the problems that remain.

Willie Williams, an analyst at Societe Generale, calls that execution risk, and he recommends steering clear, he told CNBC's Scott Wapner.

"The crisis in Europe is not necessarily over, but we at least have a temporary abatement," he says. "Now we're going to shift over to the U.S." and the politicians at loggerheads over the debt ceiling.

Euro & Sovereign Debt
Discussing whether Greek's latest bailout with keep the euro from falling, with Willie Williams, Societe Generale, and the Fast Money traders weigh in on Advanced Micro Devices and stocks you might want to drop.

The U.S. environment is quite different from Japan's right now, Williams says.

"The Japanese economy is turning the corner," he told Wapner, citing the surprising robustness of Japan's current account, and he expects the Japanese government to allow the yen to remain strong while oil prices are spiking.

Williams recommends selling the dollar against the yen at 78.50 with a stop of 79.75 and a target of 75.00

You can watch the whole discussion in the video tape, starting at 1:01.

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm.

"Money in Motion Currency Trading" repeats on Saturdays at 7pm.

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