Archived IMT (2009.04.29)

Markets remain in buy mode ahead of the FOMC announcement (18:15 GMT, 19:15 London) EURUSD eyes $1.3330, GBPUSD still unable to breach above $1.4830, while S&P500 +2.10% on the day and 29% since the lowest close of March. Bond yields push further up after the 7-year auction. FOMC announcments have proven to be catalysts to turning points in the markets. We expect stocks to sell-off following the announcements as the Fed may not suceed in forcing down yields. Pay attention to rapid volatility in the 20-30 mins after the announcement.