Economic data usually have a short-term impact on the foreign exchange market, and some important data may even become a blockbuster in the foreign exchange market that day, reversing the trend. However, even the most important data usually has a short-term impact on the market, which will play a role in braking or boosting exchange rate fluctuations without fundamentally changing the direction of the trend. But the summary of these data can usually reflect the quality of a country's economic fundamentals. When this quality shows signs of change, we should be careful, and the market often makes an unmistakable response to it.

When reading, what matters is not the absolute value of the data, but the relative change range of the data, which usually involves the expected value, the previous value and the actual value. Western countries not only have a sound economic system, but also a large number of official and private professional institutions engaged in forecasting work. Before the data is released, they will release the expected value of this data. When the expected value is better than the previous value, it will often attract speculators to buy a certain currency in the short term. When the expected value is worse than the previous value, short-term pessimism may also cover the market.

When the actual value is announced, the market is often at a sensitive moment, the transactions will be very frequent, and the exchange rate may fluctuate very violently. If the actual value is better than the previous value and the expected value, it usually represents positive, and vice versa. If it is not much different from the previous value and expected value, it will often only cause general oscillation. The greater the gap between the actual value and the previous value and the expected value, the greater the positive or negative energy, and the more intense the market fluctuation will be. For example, the non-farm employment data in the United States is expected to increase by 250,000, and the actual published value is only 654.38+0.3 million. The euro or pound can soar by more than 654.38+000-200 points in 654.38+0 minutes, and the increase can reach more than 300 points in one night.

Among the economic data of various countries, the economic data of the United States is the most important, and all non-American currencies will have obvious reactions to the data of the United States, while the data of the euro zone will stimulate the market much less, so it is difficult to see that the market will react violently to the data of the euro zone, and the yen is the least sensitive currency to the data, even for domestic data. Often other currencies are crazy, and the yen is indifferent because of the data stimulus.

On how data analysts interpret economic data, Bian Xiao is here to share with you. If you are interested in big data engineering, I hope this article can help you. If you want to know more about the skills and information of data analysts and big data engineers, you can click on other articles on this site to learn.