Euro Area EUR

Euro Area ECB Quantitative Easing

Impact:
Medium

Latest Release:

Date:
Surprise:
€10B
| EUR
Actual:
€80B
Forecast: €70B
Previous/Revision:
€60B
Period:
What Does It Measure?
The Euro Area ECB Quantitative Easing (QE) measures the European Central Bank's (ECB) monetary policy instrument aimed at increasing liquidity in the economy and encouraging lending and investment through the purchase of financial assets, primarily government and corporate bonds. It primarily focuses on assessing components such as money supply growth, interest rates, and overall economic stimulus effects within the Eurozone.
Frequency
The ECB’s announcements regarding Quantitative Easing are typically made during its monetary policy meetings, which occur approximately every six weeks, and may include preliminary and final assessments of the program's impact.
Why Do Traders Care?
Traders closely monitor the ECB's QE program as it significantly influences interest rates and liquidity in the Eurozone, directly impacting the euro (EUR), European equities, and bonds. A more aggressive QE stance can bolster risk assets and lead to a depreciation of the euro, while tapering or ending QE could strengthen the currency and result in bearish trends for stocks.
What Is It Derived From?
The QE measures are derived from the ECB's assessments of economic conditions, inflation forecasts, and financial stability indicators, based on data inputs from various reports and surveys, including private sector forecasts and macroeconomic statistics. The program typically relies on a robust methodology for estimating the economic impacts of its asset purchases, incorporating diffusion indices and market simulations.
Description
The QE program aims to lower interest rates and make borrowing cheaper, thereby stimulating economic activity and increasing inflation to desired levels. Preliminary reports may present early estimates of the program's impact, while final reports provide a more comprehensive evaluation based on full data collection, including long-term asset purchase strategies and market responses.
Additional Notes
This QE event serves as a leading economic measure, indicating potential shifts in monetary policy that could influence broader economic trends in the Eurozone and affect global markets. As central banks globally reevaluate their policies in response to inflation and growth, comparisons can be drawn between the ECB's actions and those of other major central banks like the Federal Reserve.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bearish for EUR, Bullish for Stocks. Dovish tone: Signaling lower interest rates or economic support is usually good for the Euro but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Mar 10, 2016
€80B
 €70B
€60B
 €10B