It will be a while before we know what the impact of the European Central Bank’s (ECB) bond purchase program will be. Yesterday, as you’ve probably heard, the ECB announced its intention to purchase 60 billion euros of bonds per month between March 2015 and September 2016.
The immediate impact was a decline in the value of the euro against the dollar. This is a good thing for Americans with near-term plans to travel to Europe. It’s not good for American companies conducting business across the Atlantic. A stronger dollar makes U.S. products more expensive and reduces profits translated from euros into dollars. (The actual reduction from currency translation depends, in part, on the type of hedging employed.)