needs Trading during news To understand how liquidity changes, not just whether the news is positive or negative. When important economic news is released, spreads may widen and slippage may occur, and price may move first in the opposite direction before choosing a path. Therefore, the economic calendar on the site helps you know the event timing, its impact level, and prepare for several scenarios instead of chasing the first move.
Why does the market move when news is released?
Before an event with high impact, some liquidity providers may pull quotes or widen the bid-ask spread due to heightened uncertainty. In the moments right after the announcement, a large number of orders enter the market simultaneously, while prices move quickly.
This behavior typically appears in one or more of the following forms:
- Surprising widening in Spread.
- Executing the trade at a price different from the requested price.
- A quick jump followed by a sharp reversal.
- Volatility in both directions before a clearer path emerges.
- Do not execute the order if there is no liquidity at your price.
News like NFP or Interest rate decision Sharp volatility may be sparked as it affects growth and inflation expectations and monetary policy. But the size and direction of the move are not available in advance, and no particular reaction can be considered certain even if the result is better or worse than expected.
Trading during news and widening spreads
The spread is the difference between the bid and ask price. In quiet times, this gap is typically more stable, but it can widen around news due to lower liquidity and higher pricing risk.
A wider spread means the trade may start with a larger-than-usual execution loss. One side of the price may reach the stop-loss even if the displayed price on the chart looks a bit distant. This varies by instrument, liquidity conditions, and price display method.
The likely scenario is a return of the spread to a more stable state after absorbing the initial orders. This scenario is invalidated If spreads remain abnormal or news flow continues to shift market expectations. Therefore, a passing moment of news is not enough to assume normal execution.
What is slippage and why does it happen?
Slippage is the execution of an order at a price different from the price shown when it was sent. The difference may be in favor or against the trader, but becomes more evident when the market moves quickly and there isn’t enough liquidity at the requested price.
Market orders are affected by slippage because they seek the best available price, not a guaranteed price. The specific order controls the price, but it may not be filled at all. Also, a stop loss order does not guarantee a fixed exit price when the market jumps between distant levels.
A trader may assume that a clear direction after the news will guarantee entry at the visible price. This assumption is invalidated If the price moves before the order arrives or liquidity vanishes at the required level. Therefore separate the quality of the analytical idea from the quality of execution; the trend may be correct, but entry could be costly due to slippage and spreads.
Why does the first counter-move appear?
Not every move after a news event is the final trend. Algorithms may react to the headline figure, then the market re-evaluates the details or statements from officials. An opposite move can also arise from closing prior positions or triggering stacked orders near nearby levels.
There are three main scenarios:
1. Continuing the first move: The price trend remains after initial volatility. The scenario is invalidated if price returns strongly inside a prior-news range or movement becomes a repeated reversal in both directions.
2. Reversal of the first move: The price starts in one direction, then reverses after absorbing the details. The scenario is invalidated if the initial move regains momentum and price maintains its direction.
3. Directionless volatility: Rising and falling moves continue with wide spreads. The scenario is invalidated when liquidity stabilizes and a more orderly path appears, but it does not guarantee the path will continue.
The goal is not to predict the certain scenario, but to identify the point that eliminates all possibilities before acting.
Linking the plan to the economic calendar
The upcoming calendar shows events in UTC, including:
- 03:10 AUD — comments from the Reserve Bank of Australia Polak, with high impact.
- 11:00 EUR — European Central Bank President Lagarde's remarks, with a moderate impact.
- 15:00 EUR — European Central Bank President Lagarde's remarks, with a moderate impact.
- 15:05 CAD — Bank of Canada comment, with a moderate impact.
The expected and previous values for these events are not disclosed in the available data. Since these are words from officials and not numeric data, the market may react to the wording of the statements and the change in tone during the event. Also verify the date of each event in the calendar and convert UTC timing to the trader’s local time.
Before the event, you can review the currency-related tools and determine whether the spread is normal. During the statements, it is important to watch for renewed volatility with each new comment. After the event, you can monitor spread stability and price structure instead of assuming the effect ends immediately.
Market snapshot for 24 hours
Available data show positive performance for the mentioned digital assets: Bitcoin at 81640.01 with +0.57%, Ethereum at 2662.88 with +0.67%, Solana at 111.99 with +0.74%, Ripple at 1.4324 with +1.55%.
These moves do not prove that a specific economic event caused them, nor do they guarantee continued performance. The behavior of digital assets may change if central banks’ statements affect liquidity or interest rate expectations, while this linkage is invalidated if prices move due to cryptocurrency market-specific drivers.
Ultimately, the calendar helps identify when risk rises, but it does not predict price reactions. The best use is to prepare clear scenarios, monitor the spread, understand execution constraints, and determine what would invalidate each scenario. This content is educational analysis and not investment advice.
Key points
- The widening of spreads around news may raise entrance and exit costs even if the analytical idea is correct.
- Slippage results from speed of movement and liquidity gaps, while limit orders may not fill.
- The first move may continue, reverse, or turn into a range, so determine what cancels each scenario.
