This is interesting piece from Finance Magnates (good ForexLive friends!), it examines the FX market's reactions to major economic events:
- focus on Federal Reserve meetings, NFP releases, and CPI releases
- uses high-frequency data to analyze price changes on a millisecond scale
The report highlights the pace of price movements. It shows that 60% of intra-hour price changes occur within the first minute, with 30% occurring in the first two seconds after an economic announcement.
***
I'm guessing that many of us reading this will not necessarily be trading “millisecond price changes”. Some will, I wouldn't think most. But for us (myself included) manual sell traders the information suggests that getting ahead of the established trend quickly, possibly back in price, could be a trading opportunity – supported by this data.
The link above is to the FinMag article. Let me know what you think in the comments!
Source link
