Money in Motion

How to Trade Washington's Debt-Ceiling Gridlock

Phew! That was a nice relief rally in the euro. But now that it's history, look elsewhere for your next trade.

The deal to bail out Greecegave the euro  a nice lift into Friday morning. But since then, investors have started to focus on the problems that remain.

Willie Williams, an analyst at Societe Generale, calls that execution risk, and he recommends steering clear, he told CNBC's Scott Wapner.

"The crisis in Europe is not necessarily over, but we at least have a temporary abatement," he says. "Now we're going to shift over to the U.S." and the politicians at loggerheads over the debt ceiling.

Euro & Sovereign Debt

The U.S. environment is quite different from Japan's right now, Williams says.

"The Japanese economy is turning the corner," he told Wapner, citing the surprising robustness of Japan's current account, and he expects the Japanese government to allow the yen to remain strong while oil prices are spiking.

Williams recommends selling the dollar against the yen at 78.50 with a stop of 79.75 and a target of 75.00

You can watch the whole discussion in the video tape, starting at 1:01.

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