Why economic data matters for financial markets

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Economic data releases are among the most closely watched events in financial markets. Indicators such as inflation, employment and economic growth provide critical information about the state of the economy and influence expectations about future monetary policy. Markets often react within seconds of new data being published.

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Unlike long-term structural trends, economic data releases offer frequent, standardized updates that can quickly change investor sentiment. Even small deviations from expectations can trigger significant price movements across asset classes.

 

This section explains how and why economic data releases move markets and why expectations often matter more than the data itself.