Strategist to Euro Traders: Look Out Below
Think the euro's had enough of a fall? Think again, this strategist says.
Jens Nordvig, global head of G10 FX strategy, has been strongly bearish on the euro through all the ups, downs, and sideways moves of the year. Now that it's moved below 1.30 against the dollar, some investors are nervous about staying negative - but Nordvig thinks the single currency has a ways to go.
"After this EU summit, it's very clear that even if there is some debate about the long term, there is very, very little to solve our short term problems," he says. "That has opened the way to a much more fast-paced move."
Nordvig is very comfortable with his target of 1.20 for the euro against the dollar by the end of the first quarter, he told CNBC's Scott Wapner.
"The question is whether we are going to go quickly toward that target." The upcoming bond auctions in Europe will be a key determinant, as will the European Central Bank's three-year money tender on Dec. 21, Nordvig says. "If there is any turmoil around those, I think we could head relatively fast."
As for the possibility of parity against the dollar, "for the year as a whole, we should not rule that out at all," he says.
You can watch the whole discussion on the videotape.
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