The Dow Jones has tended to stay rather flat on the seven previous occasions when there have been royal weddings, Chris Zwermann’s, global strategist at Zwermann Financial, told CNBC Friday.
The chartist took a close look over the last seven British royal unions. From the 1923 wedding between Prince Albert Duke of York and Lady Elizabeth Bowes-Lyon — later known as King George VI and Queen Elizabeth — to Prince Charles marrying Camilla Parker-Bowles in 2005, he tried to find a trend in the market’s reaction.
“In years of royal weddings, more or less, there’s no money left for the stock market. It’s only going sideward,” Zwermann said.
“In all the years, all the markets in the Dow Jones move more or less sideward or move down in the second half,” Zwermann found. “Only in 1999, when Prince Edward got married, we saw the market go up until May, where we’re now, and after that, we only went sideward.”
Sterling to Gain Ground
The dollar index was put under pressure following the Federal Reserve’s chairman, Ben Bernanke, press conference on Wednesday.
Zwermann sees the dollar go down versus the poundafter analyzing a longer term chart.
“If the dollar continues to go weaker - maybe, in the meantime, from $1.66 - we might have some kind of reaction,” he said, adding that, later on, the dollar will weaken further.
“The targets are far higher, so we can see here, $1.73, and later on $1.85, talking about three quarters of a year from here… But it’s a global dollar weakness, and that was also affecting sterling," he added.