oussama94
05-28-2017, 00:21
Data releases on their own are not as important
as whether they come out above or below
market expectations. In other words, in addition
to knowing the data that will be released, it is
also important to know what the market is
expecting the data to come out as. For example,
if unemployment comes out at 5%, lower than
the previous month’s data release of 5.1%, thismay seem like good news. However, the market
will react negatively to this release if the
expectation was that unemployment would fall
to 4.5%. For this reason, you should always
know what the market is expecting in order to
evaluate whether the actual data release is a
positive or a negative surprise. You should also
note that the more a data release deviates
from expectations, the more it will impact on
exchange rates.
as whether they come out above or below
market expectations. In other words, in addition
to knowing the data that will be released, it is
also important to know what the market is
expecting the data to come out as. For example,
if unemployment comes out at 5%, lower than
the previous month’s data release of 5.1%, thismay seem like good news. However, the market
will react negatively to this release if the
expectation was that unemployment would fall
to 4.5%. For this reason, you should always
know what the market is expecting in order to
evaluate whether the actual data release is a
positive or a negative surprise. You should also
note that the more a data release deviates
from expectations, the more it will impact on
exchange rates.