The euro has been on a tear, but don't just look at it against the dollar, this strategist says.
There was a time not long ago when the euro was on the ropes. But what a difference a few weeks make: today the euro topped 1.3100 against the dollar in the wake of the Federal Reserve'sannouncement of a third round of quantitative easing.
"We cannot underestimate the power of sentiment here," says Kathy Lien of BK Asset Management, adding investors who were short the euro are also covering their positions, helping to lift the common currency.
Fed Chairman Ben Bernanke's strong wording of his QE announcement is also helping, Lien says. "The word 'unlimited' is going to resonate across the FX markets," she told CNBC's Scott Wapner. "I think risk appetite and euro-dollar have more room to go."