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Dennis Gartman: Euro Will Continue to Slide

Once again, all eyes were on Europe Wednesday as euro zone leaders appeared to ready to support the region’s struggling banks. But that doesn’t mean the euro isn’t going to continue to fall, according to strategic investor Dennis Gartman.

The euro was down during Wednesday’s session as the pledge by policymakers to strengthen European banks lacked the details sought by investors to allay worries over a Greek default.

In fact, Gartman believes what’s happening with the financials in Europe isn’t helping matters.

“The banks who bought sovereign debt are being bailed out by the same sovereigns,” he said. “That sounds to me like monetization of the first order, and as long as they’re doing that they’re creating more euros, simply put.”

And he thinks that means a weaker euro over time.

Gartman has been saying for some time the currency was going lower. He expects it to continue to pop whenever there is positive news out of Europe, but he noticed a pattern.

“Each low in the euro is lower [and] each high in the euro is lower,” he noted.

In other words, it's pausing on the way down.

“It’s a very rational, very reasonable, very logical way for the market to move,” he said. “And I don’t think that’s going to change any time soon.”

He thinks if the North American sessions start closing Wednesday with the euro under $1.33, we’re heading for new lows again.


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Trader disclosure: On Oct. 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long (AAPL). Pete Najarian is long (C). Pete Najarian is long (MS). Pete Najarian is long (MSFT). Jon Najarian is long (AAPL) call spreads. Jon Najarian is long (CY) call spreads. Jon Najarian is long (SWKS) call spreads. Jon Najarian is long (RIMM) call spreads. Jon Najarian is long (MMR) call spreads. Jon Najarian is long (NfLX) call spreads. Jon
Najarian is long (X) call spreads. Jon Najarian is long (CME). Jon Najarian is long (CBOE). Jon Najarian is long (CIGX). Dennis Gartman: Gartman owns (C), Gartman is short EUR; Gartman is short the Sterling, Gartman is short S&P futures, Gartman owns FAX, Gartman owns FCX, Gartman own AAPL. Karabell owns (JPM)Zachary Karabell: Karabell owns (AAPL); Karabell owns (MSFT); Karabell owns (GOOG); Karabell owns (MON).

Zach Karabell
Rivertwice Capital is short (XLF)
Rivertwice Capital is short (SPY)
Rivertwice Capital is owns (MON) puts
Rivertwice Capital is owns (TGT) calls

Dennis Gartman
Funds Managed by Dennis Gartman are long (FAX)
Funds Managed by Dennis Gartman are long the Australian Dollar
Funds Managed by Dennis Gartman are long the Canadian Dollar
Funds Managed by Dennis Gartman are long (CF)
Funds Managed by Dennis Gartman are short the S&P
Funds Managed by Dennis Gartman are short the EUR
Funds Managed by Dennis Gartman are short the Sterling

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