Forex Term

Quantitative Easing

A central bank creating money to stimulate the economy.

Quantitative easing (QE) is when a central bank creates new money to buy assets like government bonds, aiming to lower rates and boost a weak economy. Because it increases the money supply, QE usually weakens the currency, so traders watch for it as a major fundamental driver.

Example

A new round of quantitative easing often pushes the affected currency lower.

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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.