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General TradingE

European Central Bank (ECB)

The European Central Bank (ECB) is the central bank for the eurozone, responsible for monetary policy and maintaining price stability. Its decisions on interest rates and quantitative easing significantly impact the euro and European financial markets.

Example

When the ECB raised its deposit rate by 75 basis points in September 2022, the euro rallied 1.5% against the dollar as traders interpreted the aggressive hike as a strong inflation-fighting signal.