Archived IMT (2010.04.28)

TODAY's FOMC DECISION (18:15 GMT) may continue the DOVISH LANGUAGE of keeping "extended period" in the statement, but WATCH OUT out From the possibility that one more FOMC member (in addition to Kansas Feds Hoenig) will dissent with the FOMCs dovish stance. St Louis Feds Bullard has recently suggested changing the extended period phrase in favour of adding a condtionality clause (e.g if economy worsens or depending on grpwth). Any additional dissenters would be hawkish and USD-positive. S&P DOWNGRADES SPAIN to AA, driving EURUSD down to $1.3120. Moody's and Fitch say they have no comment on whether they will be next to downgrade Spain, but Fitch says key risks is whether Spain can recover to robust growth over medium term.