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How to Play the Euro's Fall

Mike Kemp | Getty Images

Dismal news is sending the euro tumbling - but that doesn't mean you should jump in on weakness.

The euro is having a terrible, horrible, no good, very bad day, especially against the Swiss franc. No surprise, considering the dismal manufacturing and other reports coming out of Europe. But with the single currency having been range bound for so long, does it make sense to jump in on this weakness?

Hardly, says Andrew Busch, global currency and public policy strategist at BMO Capital Markets. "We've got a series of votes that are going to have to happen over the next two months that are pretty touch and go," and if they go the wrong way, the financial stability plan and the Greek bailout will go by the wayside.

So far, officials don't seem to be fully grasping the severity of Europe's problems, Busch told CNBC's Scott Wapner.

"Italy continues to walk away from their austerity measures." Meanwhile, in Germany, the idea of aid for wayward peripheral countries is not exactly gaining traction. The Supreme Court there will rule on whether the bailout plans are even legal, and some politicians really have their backs up about bailouts.

Busch warns that if Chancellor Angela Merkel "can't find a way to get the rest of the European Union to go along with these changes and she starts losing political support, the whole thing really kind of falls apart."

You can watch the discussion in teh video clip.

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