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How Central Banks Impact the Forex Market
2021-06-09 07:00:00
Richard Snow,
Markets Writer
The role of central banks in the forex market
Central banks are mainly responsible for maintaining inflation in the interest of sustainable economic growth while contributing to the overall stability of the financial system. When central banks deem it necessary they will intervene in financial markets in line with the defined “Monetary Policy Framework”. The implementation of such policy is highly monitored and anticipated by forex traders seeking to take advantage of resulting currency movements.
This article focuses on the roles of the major central banks and how their policies affect the global forex market.