Forex: Beware the Ides of March... and Be Careful Around the FOMC Meeting

Thus was the warning given to Julius Caesar prior to his being killed on that very day. Today is the Ides of March, and a death has occurred. Only it is the financial markets that have taken the place of Caesar, as there is a massive sell-off taking place. And while I don’t fancy myself the soothsayer, I have been warning about the risk in the markets for some time.

Today news out of Japan is that there are radiation leaks from the nuclear reactors that were affected by the earthquake and tsunami, which could have an even greater negative impact of the economy. As a result, the Nikkei was down 10% overnight, inducing some major risk aversion. This also has dragged European stock markets lower, ranging anywhere from 2.5% to 4.5% lower so far today. U.S. stocks are also set to open significantly lower, and both oil and gold have pulled back.

Forex: Beware the Ides of March... and Be Careful Around the FOMC Meeting