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How to Trade Thursday's Central Bank Meetings

European Central Bank
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European Central Bank

If you're waiting for the European Central Bank to give the euro a lift, don't hold your breath, this strategist says.

Thursday is a big day, with meetings of both the European Central Bank and the Bank of England. But not much may happen - and that could hurt the euro, according to Camilla Sutton, chief currency strategist at Scotia Capital.

"Probably the biggest risk isn't the BOE, which is likely to be a nonevent," she told CNBC. But she expects President Jean-Claude Trichet to be cautious, which "takes some wind out of the euro's sails."

Sutton recommends selling the euro against the British pound at current levels, around 87.40 with a target of 84 and a stop loss of 88.50.

"There's an awful lot of risk baked into the euro," Sutton acknowledges, noting that Trichet could make more news than she expects. But "There's a tremendous amount of risk everywhere, and the reaction to the move today in the Swiss franc is fairly dramatic. We didn't even get back to the highs in euro swiss. I think that highlights the headwinds facing central banks."

You can watch the whole discussion in the video clip, starting at 3:56.

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.