oussama94
05-29-2017, 00:22
One of the biggest changes that we have seen over the past few years is
the fact that knee-jerk reactions are more tempered. In 2004, we used to see
a lot of knee-jerk spikes followed by retracements. Oftentimes this made
the reaction to U.S. economic data in the first 20 minutes larger than the
end-of-day reaction. In 2007, however, we saw smaller knee-jerk reactions
and longer follow-through. One of the main reasons for this difference may
have been the fact that the Federal Reserve was lowering interest rates in
2007. Therefore, traders needed to better assess the ramifications of the
economic release for the Fed’s next monetary policy decision. According
to our own analysis of 20-minute and daily reactions, we have created the
following rankings for U.S. economic data
the fact that knee-jerk reactions are more tempered. In 2004, we used to see
a lot of knee-jerk spikes followed by retracements. Oftentimes this made
the reaction to U.S. economic data in the first 20 minutes larger than the
end-of-day reaction. In 2007, however, we saw smaller knee-jerk reactions
and longer follow-through. One of the main reasons for this difference may
have been the fact that the Federal Reserve was lowering interest rates in
2007. Therefore, traders needed to better assess the ramifications of the
economic release for the Fed’s next monetary policy decision. According
to our own analysis of 20-minute and daily reactions, we have created the
following rankings for U.S. economic data