- JPMorgan Sells Good Assets to Offset 'London Whale'
- Greece Pours $22.6 Billion Into Its Four Biggest Banks
- Euro Isn’t Loved, but Few in Europe Want to Drop It: Poll
- Romney Can Seal Republican 2012 Nomination in Texas
- Madoff Case Is Paying Off for Trustee ($850 an Hour)
- Buffett-Backed BYD Defends Electric Car After Accident
- 'Shadow Banking' Sector Halved Since Pre-Crisis: Report
- Cool Jobs: From Gold Stacker to Bed Tester
- Don't Buy Hon Hai Shares on Apple TV Rumors: Analyst
- Option Bulls Dig Into Ivanhoe Near Lows
- Facebook: The Song — Yes, We're Serious
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
MOST SHARED
- Glitches Halt New Goldman Trade Platform
- Euro Zone Bank Safety Net Leaves Holes Unplugged
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Shares to Open Higher; Investor Focus Turns Home
- Osborne in U-Turn on Hot Pasty Tax
- Funds Cut Exposure to Euro Zone Banks
- As Irish Head to Polls, ‘No’ Voices Get Louder
- Euro Isn’t Loved, but Few Want to Drop It, Poll Says
- Egyptians Torch Shafiq HQ as Vote Triggers Violence
- Fire Kills 19, Mostly Children, in Upscale Qatar Mall
MOST POPULAR
HOT ON FACEBOOK
Dollar at Risk of Becoming 'Toxic Waste': Charts
Text Size 
The dollar's slump could get far worse if the dollar index takes out last year's low, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.
"If the (dollar index) takes out the low that was made roughly a year ago I really think that will not only encourage more sales, it will cause a little bit of minor panic," Griffiths said. "A year ago it was deemed too cheap, if it goes any lower than that it's actually become toxic waste."
The dollar [.DXY
Loading...
()
] resumed its recent downtrend Monday in the wake of a meeting of finance ministers from the Group of 20 nations at the weekend. The meeting failed to yield a definitive agreement on currencies, putting selling pressure on the greenback.
"The dollar is being trashed, we've actually had effectively devaluation of about 14 percent in the last two months," Griffiths said.
His view is contrary to that of HSBC foreign exchange strategist David Bloom, who told CNBC that a continuation of the currencies war after the G20 might put pressure on risky assets, causing a flight to safety into the dollar.
The outlook for the stock markets is more positive and the major indexes could be set to benefit from the seasonal upswing that typically starts at this time of year, according to Griffiths.
"We are now at the very beginning, on an ordinary year, of the strong season of the year," he said.
"The fact that it didn't go super weak in the weakest season on the year doesn't mean the seasonality isn't there, it means it was overridden, this time of course by the printing press of the Fed," he added.
Typically the major stock markets see a seasonal decline in September, but this year the month saw the markets rise strongly.
The seasonal upswing should add to any positive momentum being generated by expectations of further monetary easing from the Federal Reserve, Griffiths said.
If the stock rally materializes, it will likely last until the end of the year and one of the best ways to take advantage of it is to buy good quality, large-cap stocks, according to Griffiths.
"The dividend yield on the first-class equities, the sort of things that dominate FTSE, are actually safer as a stream of income than many government bonds are," he said.
Griffiths recommends the top 16 stocks in the FTSE-100, which includes HSBC [HSBA-LN Loading... ()], BP [BP-LN Loading... ()] and Tesco [TSCO-LN Loading... ()]. He also recommends the large exporting stocks in Germany's DAX index.
Both the FTSE [GB;FTSE
Loading...
()
] and DAX [DAX-XE
Loading...
()
] are likely to return to their longer-term positive trend, he predicts.
- Critical elections are scheduled for Greece in June. Here are some of the players and their roles.
- Our financial system is still not designed to meet the needs of poor families, says this author.
- Statistics show there aren’t many women billionaires compared to their male counterparts. Why?
- Click to see various forms of funding and what entrepreneurs have used to build successful companies.
- Here are some of the most expensive hotels in the world to book. And we mean expen$$ive.
- Always drink responsibly and when you do, try one of these more unusual and tasty drinks. Cheers!
Data is a real-time snapshot *Data is delayed at least 15 minutes
