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Quantitative easing

Quantitative easing (QE) is an unconventional monetary policy tool that consists in a large-scale purchasing of assets by a central bank using money that it has newly created. It is more colloquially referred to as “printing money”, though no actual banknotes are printed. Merely, money is electronically “created”. QE aims to raise the price of […]

Quote currency

In a currency pair quote, the quote currency, also known as the secondary currency, is the second currency shown. In the currency pair EUR/USD, U.S. dollar (USD) is the quote currency. Euro (EUR) is what is known as the base currency. For instance, the quote “EUR/USD 1.30” means that euro buyers would need  1.30 U.S. […]

Quote currency interest rates

In a currency pair, the quote currency interest rate is the interest rate set by the central bank that issues the quote currency. In FX markets, currencies are quoted in relation to other currencies and represented in pairs. In the EUR/USD pair, for instance, the euro is the base currency and the dollar is the […]