How to Trade on the Euro's Rough Week
It's been a tough week for the euro, and this strategist has a plan to trade on the troubles.
Between the European Central Bank's liquidity injection and the Federal Reserve's non-mention of quantitative easing, traders have been selling euros at a healthy pace. And Marc Chandler, chief global currency strategist at Brown Brothers Harriman, thinks the downturn is likely to continue.
Chandler told CNBC's Scott Wapner that when Europe finalizes the amount of private sector participation in the Greek bailout, it could hurt the euro - especially if participation is low and credit default swaps are triggered.
But rather than sell the euro, Chandler says, "we want to jump on a faster horse" and trade the Swiss franc. That currency is close to 1.20 against the euro - the maximum strength targeted by the Swiss National Bank - and Chandler argues that "if the euro is going to weaken sharply, like I expect it to, that means the Swiss franc is going to weaken faster."
Chandler wants to buy the dollar against the Swiss franc right around 0.9150, with a stop at 0.8950 and a target of 0.9500.
You can watch the discussion on the video.
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