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EducationSeptember 30, 2026· 5 Reading minutes

Trading during news: why does the spread widen and price reverse?

Strong news could move price and execution costs together. Learn to read spreads, slippage, and initial moves via the Economic Calendar.

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needs Trading during news To understand what happens inside the market, not to guess the direction of the next candle. When data such as inflation, NFP, or a rate decision is released, available orders change quickly, spreads can widen and slippage may occur before the trend settles. Therefore, the economic calendar on ACIX helps you know the event timing, its impact level, expected and previous figures, and then set conditional scenarios instead of random entry.

Why does the spread widen during news?

The spread is the difference between the bid and ask. In calm conditions, order flow is more orderly, but before major economic news, liquidity providers may reduce available prices or widen the spread to protect themselves from fast moves.

This means that the cost of opening a position may rise at the moment of the announcement, even if the broker does not change its usual fees. The price may appear on the chart at a certain level, while the available execution price differs due to rapid changes in bid/ask.

The widening spread does not determine market direction. It can widen before a move up or down, and may narrow after the initial push. Therefore it should not be considered a buy or sell signal, but rather a sign of lower liquidity and higher execution risk.

Trading during news time and slippage

Slippage is executing an order at a price different from the requested price. It often occurs when the market moves quickly and there is not enough liquidity at the level the trader sees on the screen.

Market order and stop order may be affected because stops become executable demand when triggered and do not necessarily guarantee the visible price. A limit order helps set the worst acceptable price but may not fill if price moves too quickly.

This requires distinguishing between the correctness of analysis and the quality of execution. A forecasted direction may be right, but wider spreads and slippage make entry or exit less suitable. As multiple announcements cluster in close timing, the likelihood of sudden liquidity changes increases.

Why does the first counter-move occur?

Not every candle after a news event is a final ruling on the data meaning. Price may move first in one direction, then reverse for the following reasons:

  • Pending orders accumulated around nearby levels.
  • Closing positions that were open before the announcement.
  • Market reading across more than one item in the same report.
  • Execution fee, minimum commission, exchange or regulatory fees.
  • Spread widening temporarily makes the visible move larger than the fillable move.

In inflation data, for example, traders may focus first on the headline figure, then turn to the details or its potential impact on the rate decision. In NFP, reading jobs alone may not be enough to explain the full reaction. Therefore, the initial counter move does not automatically mean the market was wrong, nor that the next reversal will continue.

What does the 30 September 2026 calendar show?

The events listed begin at 01:30 UTC with three high‑impact Australian CPI releases. The annual figure is expected at 4.1% versus 3.5% previously. The calendar also shows two monthly items: one expected at 0.5% versus 1.0% previously, and another at 0.3% versus 0.5% previously. Due to repeated monthly descriptions, review the details of each item in the calendar and do not assume they are a single release.

At 06:29 UTC, German preliminary inflation is released with a moderate impact, expected 0.5% vs. 0.2%. At 06:30 UTC, Swiss inflation for the month is released with expectations of 0.0% vs. 0.4% previously.

For the dollar, the calendar notes an NFP at 12:15 UTC with a medium impact, expecting 73K versus 38K. It then aggregates at 12:30 UTC data including the monthly core PCE price index with high impact, expected at 0.3% versus 0.2%, and the final GDP with high impact, expected at 1.5% same as previous. Also released is the Producer Prices Index with medium impact, expected at 6.4% in line with the previous. At 19:30 UTC there is a word from President Trump with medium impact, with no forecast or previous reading stated.

The presence of nearby events does not tell us in advance the direction of the dollar, but it signals the possibility of higher implementation volatility. The actual number is not available in the attached data, so follow it in the calendar when published.

Practical scenarios instead of chasing the candle

  • Continuing the first move: The scenario becomes more trackable if the spread cools and the price maintains its direction after the surge. It is invalidated if the price clearly returns to pre-news levels and fails to regain the trend.
  • Reversal of the first move: It may appear when the market reprices a report or when data conflict. It is invalidated if the price stabilizes in the direction of the initial surge after liquidity returns to a more orderly state.
  • Limited movement then later expansion: This may occur when the reading is close to expectations or the market awaits further interpretation. It invalidates if a continuous breakout occurs directly with improved execution and price does not return to the previous range.

The best approach is to open the calendar page before the event, set the time to UTC, identify the currencies and assets involved, then monitor the actual spread at the execution venue. There is no universal stop distance that fits all news, and any decision should consider the possibility of slippage or order not being executed.

In the last 24 hours, Bitcoin closed at 83000.01, down 0.79%, Ethereum at 2658.56, down 0.73%, Solana at 118.12, down 0.86%, while XRP rose 0.15% to 1.4928. These moves provide market context only and do not guarantee upcoming news directions for digital assets.

Content is educational analysis and not investment advice.

Key points

  • Spread widening at news reflects liquidity changes and does not determine the price direction.
  • Slippage may affect entries and stops even when the analysis is correct.
  • The first move may reverse, so the calendar is used to build scenarios and clear exit conditions.
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This analysis is signed by Yasser Al-Kilani (writer specializing in Islamic finance and the jurisprudence of financial transactions). Published Automatically from the live market data shown by the platform (gpt-5.6-sol), and reviewed before publication. The content is analysis, not investment advice.

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