About European Central Bank (ECB)
Bank Rate: 0.00%
President : Mario Draghi
Headquarters: Frankfurt , Germany
ECB’s President Mario Draghi started to serve as a President since November 2011 and previously served as the Governor of Bank of Italy from 2005 to 2011. He was also a Chairman of the Financial Stability Board from 2009 to 2011. I often post about such events on my FB timeline. I did again last week and my FB inbox got flooded with questions, many people were not aware of the ECB press conference or what it was. They got a shock of their lives when their Euro trades got stopped out and most traders blew their accounts. I thought I should put up this short post. I hope it helps. While we are still on that, also find out more about FOMC which is another big event which will take place on the 26th of July HERE. Don’t be caught by a nasty surprise, stay informed.
What is ECB?
ECB is the Central Bank for the EURO and it administers Monetary Policy of the Euro Zone, which consists of 19 E.U member states. ECB press conference is held 8 times a year about 45 minutes after the Minimum Bid Rate is announced. It is also called the Interest Rate Statement. The conference is about an hour long and has two parts. First part is when the actual statement is read and the second part is opened for questions which then lead to market volatility.
What are the tasks and objections of European Central Bank?
The tasks are to maintain Monetary Policy for the Euro, including the banking supervision. Their main objective is to maintain the price stability and to safeguard the value of Euro.
Why is the European Central Bank statement important to the markets, and why do we (traders) care?
It is the leading indicator that provides the clues about the future Monetary Policy. High Volatility is often expected during the press conference and it has a direct impact on Euro pairs. There are only few meetings remaining for 2017. The last conference was last week on the 20th of July. Below are the remaining European Central Bank’s 2017 dates. Please help to keep this blog going. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 Or +27 64 510 4132.