Despite the tumult in Europe, the single currency has been hanging tough. This strategist says it's time to sell.
With all that's going on in Europe, why is the single currency trading as high as it is? Willie Williams, director of global macro sales at Societe Generale, thinks he has the answer. "The market really wants to be short the euro," Williams told CNBC's Scott Wapner, but "with the positioning we currently have in the market, it's proving really difficult to remain short."
In other words, the market overall is so short the euro against the dollar that when investors cover short positions, they can push the pair higher.
That said, Williams recommends selling the euro against the Canadian dollar, entering the trade at 1.4150 with a stop at 1.4350 and a target of 1.3550. The Bank of Canada today reduced its growth forecast for 2012, which has weighed down the Canadian dollar, but Williams says, "I still think we have some issues to work out in Europe."
You can watch the whole discussion in the tape.
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