Euro to Go Under $1.20 'Almost Certainly': Gartman

Euro bills and U.S. dollars being exchanged
Euro bills and U.S. dollars being exchanged

The euro will drop even further against the dollar because Europe's problems will not be easy to solve, Dennis Gartman, author of "the Gartman Letter," told CNBC Tuesday.

The single European currency hit a 4-year low versus the greenback after the European Central Bank warned that more bad loans were ahead for the continent's banks.

Growth concerns were also high on investors agendas, after data showed manufacturing in the euro zone expanded in May at a considerably slower pace than in April, when it reached a 46-month high.

Austerity will not be embraced "affectionately" by Portuguese, Greeks, Italians so the euro zone's problems will increase, Gartman said.

The euro "is having a rough month, it's having a rough year… it's probably going to continue to have rough times ahead. Are we going under $1.20? Almost certainly," he added.

The price of oil, which has fallen recently because of worries regarding the strength of the world recovery, is unlikely to recover, Gartman said.

"It's going down further, I believe… there's plenty of oil above ground," he said.

"I'm afraid that the economy is beginning to slow down a little bit… I think that's beginning to put pressure on crude oil prices," Gartman added.

Commodities depend very much on the dollar, which makes up around 60 percent of their prices, he said.

But Gartman does not recommend investing in stocks, saying he is afraid of volatility.

"I don't like volatility… when I start to see the VIX going into 35, 40, as a pro, I go into hiding," he said.