The European Central Bank

The ECB is the European Central Bank and is the central bank of the 19 different European Union countries which have adopted the Euro as their currency. It was established in June 1998 in the German city of Frankfurt am Main. Every year the Central bank, schedules a series of meetings in order to take important financial decisions within the Eurozone. These decisions have a major impact on the markets, and therefore every forex trader should mark them on their calendar.

The principle job of the European Central Bank is to maintain the stability of the currency and preserve its purchasing power. It is an official institution within the EU and is at the core of the Eurosystem, supervising banking. They define and implement the monetary police for the area and are accountable to the European Parliament. Furthermore, it has to publish an Annual Report as part of their role and have frequent meetings.

The Decision Makers

The main body of the ECB, called the Governing Council, are the main decision makers and they usually meet once a fortnight. The monetary policy decisions, such as setting the interest rates for the Eurozone, are made every six weeks. At the meetings, the Governing Council also makes other decisions including those relating to financial stability, banknotes, statistics, legal affairs, banking supervision and payment systems.

Why are the ECB meetings so important for Traders and Investors 

In the world of investments and forex trading, it is absolutely essential for every trader to take into account any major economic event and indicator before placing a trade or choosing its next investment. A lot of serious investors use a range of analysis, tools and indicators, including fundamental analysis, when they trade the financial markets. The meetings of the ECB Governing Council are important, as the Council takes important financial decisions regarding the monetary policy and interest rates throughout the Eurozone. This has a major impact upon the Euro and its volatility compared to other currencies.

There is always exceptional volatility and price movement in the markets around the time of the scheduled meeting, and investors can expect to see the value of Euro currency to fluctuate rapidly until the announcement of any decision taken by the Governing Council is released. Being prepared for this volatile in trading is important for traders. Whether a trader prefers to short the Euro or to try and make some profit by buying Euro on the time of the volatility. In any case, volatility is good for trading the financial markets as it is an opportunity to make profits.

Here are the dates of the next six months meetings in 2019:
Date Name
20/2/2019 Governing Council of the ECB: non-monetary policy meeting in Frankfurt
07/3/2019 Governing Council of the ECB: monetary policy meeting in Frankfurt
07/03/2019 Press conference following the Governing Council meeting of the ECB in Frankfurt
20/03/2019 Governing Council of the ECB: non-monetary policy meeting in Frankfurt
21/03/2019 General Council meeting of the ECB in Frankfurt
10/04/2019 Governing Council of the ECB: monetary policy meeting in Frankfurt
10/04/2019 Press conference following the Governing Council meeting of the ECB in Frankfurt
08/05/2019 Governing Council of the ECB: non-monetary policy meeting in Frankfurt
22/05/2019 Governing Council of the ECB: non-monetary policy meeting in Frankfurt
06/06/2019 Governing Council of the ECB: monetary policy meeting 
06/06/2019 Press conference following the Governing Council meeting of the ECB 
26/06/2019 Governing Council : non-monetary policy meeting in Frankfurt
27/06/2019 General Council meeting in Frankfurt
10/07/2019 Governing Council : non-monetary policy meeting in Frankfurt

 

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