Gartman Calls Weak Dollar, Strong Yen (FXY)

Dennis Gartman, publisher of The Gartman Letter, issued a pessimistic outlook on the strength of "North American Dollars" earlier today, stating that, "the dollar...and for that matter the EUR too...is breaking down most severely relative to the Yen, the reasons for which quite obviously elude us at the moment." The only explanation Gartman gave was a possible "continued liquidation of the Yen carry trade."

He went on to praise the FOMC inaction, asserting that "is precisely what the Committee needed to do...nothing; absolutely nothing." Gartman did note a shift in the Committee's tone, however, from language like "household spending has picked up" to "household spending is increasing" and "the labor market is improving gradually."

These subtle changes evoke a growing positive outlook on the company, although it is one that, according to the Committee, "remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit" -- much the same problems that plagued the nation during FOMC's last meeting.

Investors seeking to heed Gartman's currency prediction can play the Yen with CurrencyShares Japanese Yen Trust (NYSE: FXY).