Royalmaxbrokers: Yes Will Qe3

The quantitative easing program QE is an unconventional monetary policy used by central banks to stimulate the national economy, in the event that the traditional monetary policy is ineffective. The Central Bank buys financial assets, "pouring" a certain amount of money into the economy. This is different from the more familiar monetary policy: holding interest rates on certain target values.

The whole world is waiting for a third round of quantitative easing (QE3).

The analytical department of " RoyalMaxBrokers " notes the following important points:

1. The Fed sends conflicting signals about the prospects for monetary policy in the coming months;

2. Most members of the Federal Open Market Committee (FOMC) of the Fed appear to be against a new round of quantitative easing ( QE3 ).

3. At the end of spring, the operation "twist" (selling short-term bonds and buying long-term bonds to reduce long-term interest rates) with a volume of $ 400 billion is coming to an end.

4. The outcome of the meeting, whatever it may be, will have predictable effects on a wide range of assets, including major currency pairs involving the United States dollar (GBP / USD, EUR / USD, USD / JPY, AUD / USD, NZD / USD) , Stocks and stock indices (NASDAQ Composite, S & P500, Dow Jones, etc.), gold, oil.

5. In view of its importance, the meeting of the US Central Bank through the chain will lead to the adoption of decisions by other central banks of the planet, including the Bank of Japan and the People's Bank of China, which in turn will open additional opportunities for transactions with a high ratio of potential yield to risk.

In late summer last year, when many participants in financial markets were waiting for Fed to announce a new round of asset purchases, the regulator announced only the launch of a "twist" operation, which consists in selling short-term bonds and buying long-term bonds for the same amount, which amounts to $ 400 billion. In this case, the amount of money in circulation does not change, only the time structure of interest rates changes. According to RoyalMaxBrokers , the unwillingness of the US Central Bank to "print" new money was understandable: the risks of the development of the "deflationary spiral" were leveled and, conversely, there were risks of rising inflation. In addition, the macroeconomic picture in the US has also begun to change for the better - since the beginning of the fall, economic statistics from the States have constantly beat analysts' forecasts.

The current situation and a retrospective analysis of the impact of the quantitative easing programs of the Fed on risky asset markets.

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