‘Don't Fight the ECB’: Strategist
Europe for now has a grip on the debt crisis, this strategist says, and he is ready to trade the improving market mood.
The euro cleared 1.3000 today, and Boris Schlossberg thinks he knows why.
Schlossberg, a managing director at BK Asset Management, argues that it's all about European Central Bank President Mario Draghi.
"When Draghi came out on Thursday and said 'don't mess with me,' he put a very, very strong bottom underneath the euro," Schlossberg told CNBC. "At this point, the idea is don't fight the ECB."
Between the ECB's bond buying program and the fact that European leaders are starting to come to agreement on aid measures, "they have pretty much stopgapped the sovereign debt crisis for the time being."
That said, Schlossberg is reluctant to trade the euro at current levels. So he is looking at other good news in the market - the nonfarm payroll report.
Schlossberg wants to buy the dollar against the yen "on the assumption that the U.S. economy is starting to move up," he says. "To me, a buy at 79.00 with a stop at 77.50, a first target of 80.00 and then possibly 83.00 is an interesting trade" on the better than expected jobs numbers, he adds.
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