Athens' Pain Means No Euro Gain

Tuesday, 13 Nov 2012 | 10:09 AM ET

The latest plot turn in the Greek drama has this strategist rethinking his euro view.

Just when you think the final act in the Greek drama is close, another surprise emerges. This week has been no different, with Greece finally, painfully approving an austerity budget, only to have international lenders delay a decision on its next tranche of aid.

The whole mess has Sean Callow, senior currency strategist at Westpac, rethinking his euro outlook.

"We've been quite upbeat on the euro for the past few months," he told CNBC, since European Central Bank President Mario Draghi vowed to do whatever is needed to preserve the common currency. But the lenders' intransigence is giving him pause. "They're really making Greece pay," he says.

Euro Unlikely to Hit 1.30 Level: Westpac
Sean Callow, Senior Currency Strategist at Westpac Bank explains why his firm has turned increasingly bearish on the euro, despite a legislative victory in Greece.

Callow expects Greece will ultimately receive its next slug of international assistance, but he says, "it really doesn't augur well for next year, given how hard they've had to work for it."

None of this bodes well for the euro, Callow says.

"We've pretty much given up on our previous expectations for it to recapture 1.3000."

  Name Price   Change %Change Volume

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.

Talk back: Tell us what you want to hear about - email us at moneyinmotion@cnbc.com.