Policies QE from The Fed hitting U.S. Dollars

Financeroll - Although not stated explicitly that quantitative policy run by the Federal Reserve targets the U.S. dollar, but it is known that changes in monetary policy affect the exchange rate of the U.S. dollar.

Back during the era before the crisis, have a tendency to fall when the dollar the Fed lowered its key interest rate. Since the crisis, the Fed stated that running the soft monetary policy in a way that is not common with the policy but still have an impact on the exchange rate of the U.S. dollar.

In a study conducted by Reuven Glick and Sylvain Leduc express the relationship between quantitative policy implemented by the Fed in the U.S. dollar exchange rate in currency trading. Note that the bigger surprises arising from any statement or announcement of the quantitative policy, the U.S. dollar depreciated.

A variety of evidence suggests bahwsanya Quantitative policy conducted by the Fed has created a backlash against the U.S. dollar, especially when the market is stuck in a variety of surprises in the policy statement or announcement. By using their research, if you can calculate how much shock the market with this policy will be measured how big the market will react.