A central bank, such as the US Federal Reserve or the ECB, manages a nation’s money supply and interest rates. Its decisions strongly move currencies, because higher rates tend to attract capital and strengthen a currency. Traders watch central-bank meetings closely.
Forex Term
Central Bank
The institution that sets a country’s interest rates and money policy.
Example
When a central bank raises interest rates, its currency often strengthens.
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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.