ECB

On this page, you will read about everything you need to know about the European Central Bank (ECB) including its latest monetary policy decisions and market-moving speeches.

The European Central Bank (ECB) is the monetary authority in charge of money supply and price stability in the European Union. ECB was founded in June 1998 and headquartered in Frankfurt, Germany. The European Central Bank has, the right to authorize the issuance of euro banknotes. Member countries can issue euro coins, but the amount must be approved by the ECB.

The ECB’s Mission

The main objective of the European Central Bank is to maintain price stability: safeguarding the value of the euro (EUR). The ECB and national central banks together constitute the Eurosystem, the central banking system of the euro area.

Central Banks We cover for you: RBARBNZSNBSARBCBRTNorges BankRiksbankBOEFOMCBOJECB.

The ECB is responsible for the supervision of the banking institutions in the euro area countries and in participating non-euro area Member States. The ECB contributes to the safety and soundness of the EU banking system and the stability of the financial system within the EU and each participating Member State.
In pursuing the maintenance of price stability, the ECB and Eurosystem will undertake the necessary economic and monetary analyses and adopt and implement appropriate policies. It will also properly and effectively respond to monetary and financial developments.

ECB’s monetary policy

The European Central Bank has defined price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below 2 percent. In achieving the target of price stability, the ECB aims at maintaining inflation rates below, but close to, 2% over the medium term.

Who Heads the ECB?

The European Central Bank’s President is Christine Lagarde and the Vice-President is Luis de Guindos. Christine Lagarde is the former Managing Director of the International Monetary Fund (IMF), and replaced Mario Draghi as President. The decision-making body of ECB is the Governing Council, which consists of the six members of the Executive Board plus the governors of the central banks of the 19 euro area countries.

Latest News

EURGBP

Could Bundesbank President Weidmann and ECB President Lagarde Send EURUSD Lower?

Following yesterday’s sharp drop, EURUSD is holding steady in this morning’s session around 1.0800. However, technicals suggest there could be more downside ahead. The speeches of two key central bankers from the Bundesbank and ECB may just trigger it.

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Dow Jones

Week Ahead: FOMC and ECB Meetings and China PMI to Boost Dow Jones and DAX Index?

As the new week starts the DAX index and Dow Jones traders’ mood remains upbeat, as the growth rate of new coronavirus cases dropped further over the weekend, and the world is getting ready to open for business. The China PMI on Thursday will give us an idea of what lies ahead in western countries, while the ECB could boost risk-sentiment further if they announce that they will buy junk bonds at their Thursday Rate meeting. The Federal Reserve is also hosting a rate meeting, but the expectations are low. The ISM report, and US Q1 GDP report will also be published, but the reports are bound to be soft, as the US is still under lockdown. On Thursday the focus will also shift to Crude oil prices, as the weekly EIA report is published...

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EURCHF Trades Lower on SNB Decision; ECB Launches PEPP

The Swiss National Bank (SNB) left its policy rate unchanged at -0.75%, even as the European Union's Chief Brexit Negotiator Michel Barnier has announced that he has the coronavirus.  The SNB was not expected to cut rates, which are already in negative territory and have done little to blunt the [...]
EURUSD

EURUSD Rises and Drops Steeply As ECB Holds Rates

The EURUSD has extended losses for the day after the European Central Bank (ECB) left interest rates unchanged. The holding action of the ECB is the first among the five major central banks that have taken action on the interest rate this month in the light of the coronavirus crisis. [...]
EURGBP

EUR to GBP Exchange Rate Trades Higher on the BOE’s Rate Cut; What Will the ECB Do Today?

EURGBP continues to trade higher today as the pound’s weakness following the BOE’s rate cut lingers. The currency pair is up 33 pips from its opening price at 0.8811. However, can it extend its gains with the ECB also expected to ease monetary policy later today?

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EURGBP

EURUSD Trades Higher After Trump’s Speech, WHO’s Pandemic Announcement, & Ahead of ECB

EURUSD is trading higher in today’s Asian session amid risk aversion sparked by Trump’s speech and WHO’s announcement. The currency pair rose from its lows at 1.1249 to a session high of 1.1332. As of this writing, EURUSD is trading at 1.1306....

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