by John Galt
March 19, 2015 05:00 ET
At 2 pm yesterday the Federal Reserve launched their desired impact on the currency wars by dropping subtle hints that they were going to do nothing about interest rates but that they were paying attention to the US dollar. Low and behold, we had a flash crash in the USD and surge in the Euro. Fast forward to the open of the European markets this morning and the ECB demonstrates that they can make their currency move also:
The Euro has been on just as wild a roller coaster as the currency wars continue this morning:
As I typed this article, the US Dollar Index crossed 100 again briefly so to say the Fed had the desired impact would be incorrect. The true reading of the Fed statement is quite damning because it indicates they are not ready to do anything proactive to foster economic growth or prevent another disaster in the financial markets. Stay tuned as currencies and junk bonds, not equities are sending the warning signals about the future.