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FXstreet.com (Barcelona) - Geoffrey Yu and Gareth Barry, Strategists at UBS note that as expected, the FOMC announced a $45bln per month Treasury Purchase programme to succeed twist, but the surprise result was the decision to pursue further policy accommodation until numerical macro targets are attained.

The 6.5% unemployment and 2.5% inflation expectation targets were already in the pipeline but the delivery was earlier than expected. They believe that in the short run, policy remains unchanged but the Fed expects markets to react more to data up ahead as the economy continues to heal.

Shifting focus away from the Fed, Yu and Barry highlight that SNB decision today at 08:30 GMT. Calls on exigent policies such as the exchange rate floor will not yield anything new, however the issue of negative interest rates will likely surface, given some recent decisions made by commercial banks and discussions on the topic at the ECB. Ultimately, they believe that modifications in interest rate policy are more likely to be extreme tail risks.

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