How to Trade the Euro Now
By: Kelley Holland | News Writer
The euro is having a very big day in the wake of the European Union summit.
Here's how to trade it now the outlines of a debt deal are out.
How about that euro, huh? Range-bound for weeks, it staged a major breakout on the heels of the European Union summit.
But Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, says the fun may not last.
Between the summit news and a respectable U.S. GDP report, "I wouldn't fight this momentum here right now in the euro, but I do think the euro could be vulnerable next week," she told CNBC's Scott Wapner. That's because the European Central Bank is meeting on November 3, and Bourdeau thinks an interest rate cut could be in the offing - probably at this meeting, but if not, sometime in the fourth quarter.
She recommends selling the euro on a bounce higher to 1.4270 with a stop at 1.4505 and a target of 1.3600.
You can watch the whole discussion on the videotape.
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