The Fed, the ECB and the Bank of England

The Federal Reserve

The Federal Open Market Committee meets eight times a year and sets the federal funds rate. Its dual mandate means it watches employment as closely as inflation, which is why US jobs data move the dollar so much. Decisions come with a statement, a press conference by the chair, and four times a year a set of projections including the dot plot. Because the dollar is on one side of most forex trades, Fed policy moves every pair.

The European Central Bank

The Governing Council meets every six weeks and sets the deposit rate. Its mandate is price stability, and it has to make one policy for economies as different as Germany and Greece, which makes it slower and more consensus-driven than the Fed. The president's press conference follows each decision, and the euro often moves more on the conference than on the statement.

The Bank of England

The Monetary Policy Committee meets eight times a year and sets Bank Rate, with the vote split published at once; a 6 to 3 vote tells the market more than the decision. The bank targets 2 percent inflation, and sterling is sensitive to UK inflation and wage data because the UK economy has run hotter on both than its neighbours in recent years. Four meetings a year come with a Monetary Policy Report and a press conference.

Trading the three

Key takeaways

• The Fed has a dual mandate and moves every pair; watch jobs and inflation.
• The ECB is consensus-driven across twenty economies; the press conference matters.
• The Bank of England publishes its vote split; UK inflation and wages drive sterling.
• Each bank's calendar and communication style is part of trading its currency.