Fundamental Analysis
Fundamental Analysis: Reading Economic Data Surprises
1 min readEvergreen guide
Why markets move on the difference between actual and forecast figures, and how to prepare.
Actual vs forecast
Markets price in expectations before a release. The move often depends on the surprise: the difference between the actual figure and the consensus forecast. Revisions to previous figures can matter too.
Preparing
- Check the calendar for high-impact events in your currencies.
- Expect wider spreads and slippage at release time.
- Consider reducing size or waiting for volatility to settle.
This content is for educational purposes only and is not investment advice or a recommendation to buy or sell any instrument. Trading involves a high risk of loss.