The Euro Is Headed Higher: Strategist
Greek crisis? What Greek crisis? Near term, this strategist likes the euro.
What with Greece up against a bankruptcy deadline and recession looming, you might think it's not the time to buy the euro - especially since it's had a nice run already.
MacNeil Curry, chief global rates and foreign exchange technical strategist at Bank of America Merrill Lynch, begs to differ.
"We've seen a multi-month base complete in the European bank stocks, which suggests that we're going to see further upside there over the course of the next several weeks, which is clearly euro supportive," he told CNBC's Simon Hobbs.
Curry also thinks the European Central Bank's liquidity injections, which could hurt the euro longer term, for now are shifting investor sentiment.
"Over the course of the next several weeks or so, it's going to be more of a constructive thing as people take a step back and say, you know what? We've stepped back from the brink of it," he says.
And plenty of those investors changing their minds have been short the euro, so when they cover their positions that will give the currency an added lift.
That's why Curry wants to go long the euro against the dollar. He would wait for a pullback and enter the trade at 1.3205, with a stop at 1.3165 and a target of 1.3435.
You can watch the discussion on the video.
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