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FXstreet.com (Barcelona) - Jim Reid, Strategist at Deutsche Bank notes that the final FOMC meeting for the year will be the key focal point of today's trading.

Deutsche's Peter Hooper is expecting the Fed to announce a continuation of MBS purchases at a $40bln a month and outright purchases of $45bln per month in longer term Treasuries after Operation Twist expires at year end. QE4 will be more open-ended, subject to at least a quarterly review and expected to continue until the labour market has shown substantial improvement.

Reid sees no significant shift in their verbal guidance on rates with expectations pushed back to mid 2015. The FOMC statement will be released at 17:30 GMT and Bernanke will start his press conference at 19:15 GMT.

Reid continues to comment that as major central banks proper the word deeper into a ZIRP environment, he feels that it is quite interesting to see that UBS will start charging clients for CHF cash balances. He notes that there are currently 13 EMEA countries with 2-year government yields trading below 1% versus 9 of them a year ago. 6 of them (Switzerland, Denmark, Germany, Finland, Austria, and the Netherlands) actually trade at a negative nominal yield now while a year ago it was only Switzerland.
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