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General TradingE

Economic and Monetary Union (EMU)

The Economic and Monetary Union (EMU) is a group of policies aimed at converging the economies of European Union member states. It established the euro as a common currency and coordinates monetary policy through the European Central Bank.

Example

When Greece struggled to meet EMU fiscal criteria during the debt crisis, the resulting uncertainty caused the EUR/USD pair to drop sharply as traders feared a eurozone breakup.