During high-impact economic data releases, markets often experience increased volatility. Key outcomes can lead to significant price movements in stocks, currencies, and commodities.
If the data is better than expected, it can lead to bullish sentiment, driving prices up. Conversely, if the data is worse than anticipated, it may trigger a bearish response, causing prices to drop. Traders often adjust their positions in anticipation of these releases, which can lead to heightened activity and unpredictable swings in the market.
Overall, these events create opportunities for profit but also increase risk due to the potential for sudden changes in market sentiment.