Tuesday's Spanish note sale left investors relieved — but the 10-year bond auctionin the offing is another matter.
So says Andrew Busch, global currency and public policy strategist for BMO Capital. Ten-year Spanish bond yields actually fell after the note auction, he says, but "you're going to see a little backing away from that" as the bond auction approaches.
That nervousness suggests a possible euro trade, Busch told CNBC's Melissa Lee.
"Overall, the euro is downtrending. We know this because we're getting lower highs and lower lows," he says. "We want to keep trying to sell the euro until proven wrong."
So Busch recommends watching the euro's reaction to the auction.
"Let's let the market dictate, in its reaction to what happens during the Spanish bond auction, to tell us whether to put the position on or not," he says.