Euro (EUR)
Central Bank: European Central Bank (ECB)
Current Interest Rate: Link here

The Dollar's Nemesis

Frankfurt, Germany, is where you will find the central bank of the 19 member nations of the Eurozone, the European Central Bank. Similar to the United States' FOMC, the ECB has a primary body that is responsible for making monetary policy decisions: the Governing Council. The council is composed of six members of the Executive board, plus the governers of the national central banks of the 19 euro area countries. The council usually meets twice a month and takes its monetary policy decisions every six weeks. (Read more about this and other central banks discussed here in Get To Know The Major Central Banks.)

Along with having control over monetary policy, the ECB also holds the right to issue banknotes as it sees fit. Similar to the Federal Reserve, policymakers can interject at times of bank or system failures, much like the global financial crisis of 2008-2009.The ECB differs from the Fed in one very important area: rather than focusing on maximizing employment and maintaining stability of long-term interest rates, the ECB works toward a prime principle of price stability, giving general economic policies second billing. As a result, policymakers will often focus a great deal on consumer inflation in making key interest rate decisions. (Read more about how central banks control inflation in What Are Central Banks?)

Although the monetary body may seem quite complex, the currency is not. When paired with the U.S. dollar, the euro (EUR) tends to be a slower currency compared to its colleagues (i.e., the British pound or Australian dollar). Trading in the euro-based pairs can be seen during the London and U.S. sessions (which occur from 3am through 12pm EST). (Read more about choosing the optimal time to trade in How To Set A Forex Trading Schedule.)

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