Enter multiple symbols separated by commas

Charts: Dollar-Yen to Drag Stocks Lower

The correlation between the dollar and the stock market is still there, Chris Zwermann from Zwermann Financial said Monday. He sees a weakening U.S. dollar-Japanese yen cross pulling stock markets lower, with the Dow falling below the 9,000 mark.

"We see in the dollar-yen and in the Dow Jones (Industrial Average) this situation that the Dow Jones was going up further and the dollar-yen was already on the way down. So now what we see here is that now the dollar-yen might pull down the stock markets," he said.

The same can be said of other correlations, such as in Germany's DAX index and euro-yen, he added.

Zwermann's sees the Dow slipping below 9,000, and expects the dollar to fall to 90 yen. He sees the dollar-yen falling to that mark this week from its current rate of 94 yen.

"All emerging market currencies have gone up quite a lot," Zwermann said.

If we break above 122.50 on the 10-year Bund future, there is a possibility we will rise to 127, he told CNBC.

"The curves are going to steepen further in the U.S.," Zwermann said when looking at the 10-year Yield note.

Contact Europe News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • China cashing in at Expo

    CNBC's Phil Han reports from the World Expo and finds out how China is hoping to bring in billions from business.

  • Trip into the 'beehive'

    At the Milan World Expo, CNBC's Phil Han speaks to UK artist Wolfgang Buttress who talked us through the British pavilion and the high-tech 'beehive'.

  • Are European CEOs gaining confidence?

    Andrew Lloyd Bailey, chairman of the Bailey Group, discusses the Young YPO's Global Pulse Index, saying that investment in non-EU Europe has been dragged down by Russia and Ukraine.