Archived IMT (2010.04.28)

YEN DROPS THE MOST as FOMC STATEMENT a marginal upgrade of its economic outlook, while maintaining the extended period phrase regarding exceptionally low levels of the federal funds rate, to which Kansas Feds Hoenig remains the sole dissenter. USDJPY maintains uptrend in weekly channel, set to test 95.20 as prelim target. Whether the Greece Factor was responsible for pushing the Fed to maintain the dovish language is very likely, but from this juncture, markets are back to worrying about the Eurozone and POSSIBLY INCLUDING ITALY, whose debt/GDP ratio is 116% of GDP, GREATER than PORTUGALs 85% of GDP, SPAINs 66.3% of GDP but less than Greeces 124% of GDP. So WHY NOT ITALY? In the meantime, traders may show another short-lived rebound in EURUSD towards $1.3280 before the next selling wave emerges-barring any concrete announcement. We still have US GDP later this week.