More important QE / EUR/USD rate is going to decrease again soon

Given a recent review of Financial times, I just read a few articles about upcoming ECB decisions pending for the early days of december. ECB will probably increase the importance of QE for the eurozone. It will probably continue to cause a deterioration of the EUR/USD rate. EUR/USD has already reach a low rate : 1 EUR = 1,06 USD. It’s possible that the EUR is going to decrease even more. An easy explanation to this decrease and any further development is by definition linked with the QE itself. Everytime the ECB is going “whatever it takes” to get an EU average inflation rate of around but below of 2% (the only aim of the ECB policy compared to the US federal reserve), private and public debt purchases are increasing the liability part of the ECB balance sheet through money creation. The ECB is creating EUR out of the blue to purchase public and private debt, betting that this behavior will encourage commercial banks and investment banks to lend more to companies and household in order to get more inflation (and consequently more growth).

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