Charts Show the Euro Won't Break Up
The euro is not in danger of breaking up, judging by its current levels against the other major currencies, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.
"From a technical point of view there's no call that the euro is about to break up. It's nowhere near as low as it's been," Griffiths said.
"Even at parity (against the dollar) it's nowhere near breaking up, it's been lower than that in the past twenty years and it's been higher than that," he added.
- Watch the full interview with Robin Griffiths above.
The debt crisis sweeping through the euro zone has led many market watchers to question the validity of the single currency. The fact that economically strong countries, such as Germany, are governed by the same monetary policy as struggling countries, such as Ireland, is often given as a reason for euro zone tensions.
Meanwhile, declines in Europe's stock indexes are limited by the willingness of politicians and central banks to intervene in the markets, according to Griffiths.
"Politics are intervening in equities markets and overriding normal economics. This is an era that we're living through that is breaking some of the previous rules," he said. "We can't extrapolate these trends down on purely economic grounds because politics steps in and stops it."
Judging by seasonal trends, stock markets should see gains through the year end into early New Year, Griffiths said.
"If we made new lows above the April high, we would definitely extrapolate the uptrend further. If we can't do that though, we're rangebound," he said while taking a technical look at the FTSE 100 .
Meanwhile, the outlook for Chinese stocks is less positive as there is "more worry in the China market than there is in the Kospi at the moment," he said.