Module 5: Fundamental Analysis
Central Banks
5 min read
Central banks set monetary policy to manage inflation and support economic stability.
Key institutions
Major central banks include the Federal Reserve (US), European Central Bank, Bank of England, Bank of Japan, Swiss National Bank, Bank of Canada, Reserve Bank of Australia and Reserve Bank of New Zealand.
Their tools include policy rates, asset purchases and forward guidance. Tone of statements and press conferences can move markets as much as decisions.
Key takeaways
- Central banks control policy rates.
- Forward guidance moves markets.
- Know each currency's central bank.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.