How to Trade the Plot Twist in the Greek Drama
The setback on the Greek austerity plan is sapping euro strength.
With apologies to Dinah Washington, what a difference a day makes.
The euro was on a multi-day roll until Thursday night, when instead of finalizing a deal, Greece's finance minister was sent back home to crank out more budget cuts and Parliamentary approval for an austerity plan.
"It looked like the debt negotiations with Greece and the troika had been going quite well until overnight," says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank. "The market was quite disappointed."
The euro took a hit on the news, but Bourdeau still wants go short the single currency against the dollar. "I just think there is too much risk events over the weekend," she told CNBC's Scott Wapner, between the pressures on the Greek government and an upcoming Eurogroup meeting.
Bourdeau wants to enter the trade at 1.3250, around the level where the euro broke down in New York trading, and look for a move to 1.2900 with a stop at 1.3360.
You can watch the discussion on the video clip.
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