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Your Euro Trade for the Short Term

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Yuri Kuzmin | iStock Vectors | Getty Images

There is plenty to worry about in Europe, but this strategist sees near-term upside for the euro.

As if Spain's banking troubles weren't enough, the first round of the French election is looming and injecting even more uncertainty into the outlook for Europe.

But Camilla Sutton, chief currency strategist for Scotia Capital, is not concerned about the near-term impact.

"The market's pretty well-versed in what's going to transpire on the weekend," she told CNBC's Michelle Caruso-Cabrera. "Unless we get a huge shock, its not really going to have a huge impact on the euro."

In fact, Sutton sees some short-term upside for the single currency. "The story is still all about growth, austerity, and the rest of the world," she says. With U.S. economic reports generating more negative surprises than positives, and data in Europe surprising on the upside, an FOMC meeting is in the offing that could generate more bearishness on the dollar.

As a short-term trade, Sutton wants to buy the euro right around 1.3180 with a target of 1.3380 and a stop at 1.3080.

You can watch the discussion on this video.

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