US Dollar's Strength is Waning: Charts
The U.S. dollar's strength appears to be waning as the focus turns from Europe's debt worries to China's possible appreciation of its currency, Chris Zwermann, global strategist and technical analyst at Zwermann Financial said Tuesday.
The dollar will likely fall against its Canadian counterpart, the euro and emerging market currencies in the short- to medium-term, Zwermann said.
The U.S. dollar will pull back to below parity with the Loonie, with a target of 0.90 Canadian dollars in the next two to three months, he said.
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"If China starts to devaluate the dollar, to upgrade the yuan, we might see even a further weakness on the U.S. dollar worldwide, which means also against the euro," Zwermann said.
Most emerging market indexes jumped over the barrier where they were before the crisis in April, making new all-time highs, Zwermann said.
He predicts that Turkey and Indonesia's stock markets will rise further, with the respective countries' currencies gaining against the greenback.