Why data days often see sharp price movements

​

Economic data releases often increase short-term market volatility.

​

High-frequency trading, algorithmic strategies and rapid information dissemination can amplify price movements immediately after data is published. Liquidity may temporarily decline, leading to sharper price swings.

 

While some of these movements may reverse quickly, others can establish new trends if the data significantly changes economic or policy outlooks. Investors therefore closely monitor not only the data itself but also the market’s reaction.