The outlook for the euro is iffy at best, this strategist says - but watch out for positioning risks.
Think the euro is having a bad day? You haven't seen the worst of it, according to Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank. "We're through the lows of October," she told CNBC's Scott Wapner, adding that she thinks the next level to watch for is 1.2860 against the dollar.
You can almost take your pick of reasons for a potential fall. Bourdeau points to the potential for European sovereign downgrades, and the very decent chance that Europe is facing a recession. But that said, "nothing is ever easy with the euro," Bourdeau says. Right now, she says, "into year end, the market is heavily positioned short euro. You just have to be careful of that."