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Here's why Dennis Gartman is bullish on the dollar, oil

The dollar will continue to strength due to a strong U.S. economy and the Federal Reserve leaning toward contractionary policy, Dennis Gartman told CNBC on Wednesday.

According to Gartman, it is abundantly clear the Fed is going to "err upon the side of being less expansionary," unlike other central banks.

"The ECB and Bank of Japan have no choice but to continue their protracted experiments and quantitative easing," the founder and editor of The Gartman Letter said on "Squawk Box."

"Money is going to find its way to the Untied States or to dollars, Canada, Australia, New Zealand ... the safer harbors as it is fearfully leaving places else," he said.

On Tuesday, the U.S. dollar rose broadly after comments from Philadelphia Fed President Patrick Harker and Cleveland Fed President Loretta Mester who said the Fed could raise rates in March.

The Fed is expected to release at 2 p.m. ET on Wednesday the minutes from its Jan. 31-Feb. 1 meeting. Traders aren't expecting much reaction to what should be relatively old news from the U.S. central bank.

Gartman also said Wednesday that he was bullish on oil for the first time, saying three occurrences peaked his interest.

"The first thing one learns in the business of commodities is something that should be fundamentally going down when inventories are extraordinarily high should be pushing crude oil prices down, and they're not," he said.

He continued: "Secondly, I watch what's known as the term structure. What is the front month doing against the second? What is the front month doing against the one year back?"

OPEC and non-OPEC producers have also been doing a good job of sticking to their supposed reduction in output, he said.

As for gold, Gartman said he is very bullish for the precious metal in euro and yen terms.

"Why would I wish to own gold in dollar terms ... when I can use cheaper devaluing currencies — the euro and the yen — to do the same thing?" he said.