Definition
The central bank for the countries that use the euro. It sets interest rates for the whole euro area.
The story
The ECB, based in Frankfurt, sets policy for 21 countries at once, which means one rate has to fit economies as different as Germany and Greece. Its decisions move the euro against the dollar and ripple into global bond markets.
Why markets watch it
When the ECB and the Fed move in different directions, the gap moves currencies and capital across the Atlantic.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms