The latest Spanish debt auction went better than expected, but this strategist sees other risks looming.
Investors breathed sighs of relief after Spain managed a less-than-awful debt auction, but Andrew Busch, global currency and public policy strategist for BMO Capital, thinks there are more risks looming.
Thursday brings a longer-term Spanish bond sale, of course, and that will "reflect more of the risks that are out there on a long-term basis for Spain," he says. "There's still some pain to come." He's also watching a wave of new data due in Britain: minutes from the Bank of England meeting and unemployment data.
"If any of these come out more dovish, I would expect the U.K.'s British pound to weaken," Busch told CNBC's Michelle Caruso-Cabrera, but he is focused on how the market responds to all the news. "If the market shows to me that we get as-expected data and the pound softens, I really want to sell it."
Busch recommends selling the pound against the dollar at 1.5950 with a stop at 1.6025 and a target of 1.5650.