Don't Stop Selling Euro Yet: Strategist
Thinking the euro has hit bottom? Think again, says this strategist.
If you've been watching the euro trade against the dollar, you may feel like it's deja vu all over again. Just as it has for months, the common currency is moving in a range against the buck, albeit in one that's slowly declining.
For more action, watch the euro against the British pound, says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank. "The euro-sterling cross is trending lower much more nicely than the euro-dollar pair," she says.
Bourdeau told CNBC's Melissa Lee she expects the decline to continue for several reasons. Germany's top court is weighing the constitutionality of the euro bailout package, and they say they will not be ruling until September, leaving a cloud over the market for weeks. Also, "Greece is under review with the troika."
So Bourdeau wants to sell the euro against the pound, entering around current levels and setting a stop at 0.8025 and a target of 0.7650.
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