# Does a big bazooka matter? Quantitative easing policies and exchange rates

> The article presents research on how quantitative easing affects the USD/EUR exchange rate. It finds large, persistent effects operating through exchange rate risk and short-term interest rate differentials. Expectations about future monetary policy also shape the response.

- Date: 2020-10-20 · published 2020-10-20T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/50844-does-a-big-bazooka-matter-quantitative-easing-policies-and-exchange-rates
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Currency responses to central bank asset purchases influence dollar-priced commodity values and trade competitiveness. This is background analysis without a new market shock.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2018-12-12 | [The life and times of ECB quantitative easing, 2015-18](https://feedsoft.ai/events/61772-the-life-and-times-of-ecb-quantitative-easing-2015-18.md) | +0.4% | +1.5% |
| EURUSD | 2020-09-22 | [Dollar rises after Fed's Evans comments on quantitative easing](https://feedsoft.ai/events/7696-dollar-rises-after-fed-s-evans-comments-on-quantitative-easing.md) | -0.7% | +0.7% |
| EURUSD | 2018-12-14 | [ECB Meeting Produces The Good And The Bad For The Euro \| Exchange Rates UK](https://feedsoft.ai/events/61770-ecb-meeting-produces-the-good-and-the-bad-for-the-euro-exchange-rates-uk.md) | +0.7% | +0.4% |
| EURUSD | 2020-03-02 | [Euro Exchange Rate Reaches 5-Week-Best As Rivals Pound Sterling And Dollar See Large Losses \| Exchange Rates UK](https://feedsoft.ai/events/6188-euro-exchange-rate-reaches-5-week-best-as-rivals-pound-sterling-and-dollar-see.md) | +2.9% | +0.5% |
| EURUSD | 2022-07-13 | [ECB is 'attentive' to exchange rate as euro hits parity with dollar \| Reuters](https://feedsoft.ai/events/40709-ecb-is-attentive-to-exchange-rate-as-euro-hits-parity-with-dollar-reuters.md) | +1.7% | +1.6% |

## Sources

- ecb.europa.eu: https://www.ecb.europa.eu/press/research-publications/resbull/2020/html/ecb.rb201020~85fb68a983.en.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.