This strategist says the euro has gotten ahead of itself.
Ready for Jackson Hole?
Until just the last few hours, currency investors were bidding up the euro in anticipation of positive market-moving news from the gathering of economic luminaries. Andrew Busch, global currency and public policy strategist at BMO Capital Markets, thinks the optimism is overblown.
"They just ran so far so fast in August, a very thin volume month, that we're due for some pullback here," he told CNBC.
So Busch suggests selling the euro "anywhere near 1.2600," with an entry point of 1.2575 being just fine. He recommends a stop at 1.2635 and a target price of 1.2475.
"Bernanke is just going to run through his list of things that they can do" in his Friday speech, Busch says. "He's not going to act tomorrow." And that will hurt sentiment, he says.
"The markets aren't necessarily nervous, but I think they're going to be disappointed."
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