Spain has been stalling in asking for a bailout, and this strategist sees the euro stalling as well — so she has another trade in mind.
When the European Central Bank announced its bond buying plan, expectations rose that Spain would soon ask for a bailout. Good thing traders weren't holding their breath, since Spain has yet to request aid.
Amelia Bourdeau,director of foreign exchange at Westpac Institutional Bank, thinks it's just a matter of time. "The market has priced in that Spain will get a bailout," she said, adding that once the country holds regional elections and releases its new budget, an aid request will probably be forthcoming. In the meantime, she sees a trade she likes on the other side of the globe.
"I prefer relative value because I think euro's stuck in a trading range," she said. Specifically, Bourdeau wants to sell the Australian dollar against the New Zealand dollar.