The end of QE – the rise of the euro

The end of QE – the rise of the euro

2019-11-11 • Updated

To make it clear how the quantitative easing affects the euro, it is worth to start from the definition of it.

Quantitative easing (QE) is an unconventional monetary policy when a central bank buys government bonds to increase the money supply. Interest rate declines and a domestic currency depreciates against foreign currencies.


The European central bank launched the quantitative easing in January 2015 to stimulate inflation and GDP growth and succeeded.

There are reasons to believe that the central bank is going to close the quantitative easing program to the end of 2018 because of the positive dynamics of the European economy. Now it is purchasing the 30 billion euros worth government bonds, and it is going to continue until September considering the opportunity to expand it again if it is needed or end the program.

But some analysts suppose that the positive dynamics of the euro can support the sooner end of the QE. For example, analysts at Barclays argued for the end of QE in September and a first hike of the rate at the end of the year.

The economic world is waiting for the quantitative easing tapering and making forecasts about it because as soon as the central bank closes this program, the euro will appreciate against the dollar. We could see that even a small news about the prospects of the QE tapering led to the growth of the euro nearly to 0.8% against the dollar on Friday, January 12.

But not only news about the quantitative easing tapering led to the rise of the euro, and also negotiations in Berlin about a new coalition government that lowered political risks supported the euro growth. It is important to take all factors into consideration.   

Making a conclusion, analysts are giving good chances to the euro. However, it is important to say that there are risks for the euro because the European central bank not always supports the growth of the euro that can reduce the European export.


What Can Drive Oil below $90 a Barrel?
What Can Drive Oil below $90 a Barrel?

The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.

Latest news

Will USDJPY slide lower in 2023?
Will USDJPY slide lower in 2023?

Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?

BoC Rates Could Alter The Trend on USDCAD and others
BoC Rates Could Alter The Trend on USDCAD and others

Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera