Central bank
The institution that manages a country's money supply and sets its key interest rate, such as the Federal Reserve or European Central Bank.
A central bank runs a country's or region's money. The US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan are the big names. Their main lever is the interest rate.
They raise rates to cool inflation and cut them to rescue a slowing economy. They can also print money, buy bonds, or step into the currency market directly.
Central bank meetings are some of the most volatile moments on the forex calendar. Many traders step aside or shrink their positions before them.
Trading straight into a central bank announcement with a tight stop and full size.
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