Greek Default Inevitable?
Is a default by debt-stricken Greece imminent? To currency trader Andy Busch, the situation in Greece is certainly "interesting."
"There's a lot of pressure that has to be brought to bear on these guys to get them to crack down, to follow through on their austerity, to raise taxes per se or to come up with revenue, while at the same time they're actually allowing them to continue this mess by the ECB buying their bonds," Busch said. "So it's an interesting dynamic that goes on."
The Greek debt crisis will come to a head in the next few weeks, though, Busch continued.
German Chancellor Angela Merkel will present a draft law to parliament on September 29 regarding euro zone policy, he noted. It would increase the powers of the European Stability Facility and provide continued support for boosting the euro zone bailout fund for countries like Greece.
On October 3, European finance ministers will decide whether to additional aid to Greece, Busch said. If approved, the money would reach Greece by October 14.
So what's the trade?
Sell euros and buy sterling , Busch said. Don't put this trade on until after the Bank of England releases its meeting minutes on Wednesday, though, Busch warned. At that point people will be exhausted from selling sterling, so he thinks it will be a good time to buy sterling and sell euros.
"Overall, the environment is just to sell euros to really take advantage of this mess that's out there until after the first week of October," Busch said.
Busch is a global currency and public policy strategist at BMO Capital Markets. He was an adviser on the economy and the financial markets to U.S. Republican Presidential candidate John McCain.
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Trader disclosure: On Sept. 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
Kinahan is long Bank of America (BAC) through stock and options
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Kinahan is short S&P 500 through options
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Cortes is short the Euro
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CNBC.com with wires. Reuters contributed to this report.