Watch Price Reaction, Not Just the Headline Economic data provides information, but the market’s reaction reveals how traders were positioned before the release. A strong employment report would normally support a currency. Yet if that currency falls immediately afterward, buyers may have already priced in an impressive number. The headline was positive; the response was not. This distinction matters in forex because sentiment is rarely as simple as good news producing higher prices. Experienced traders ask a different question: What result was the market prepared for? When price refuses to follow an apparently bullish catalyst, expectations may have been more optimistic than the published figure. The same principle applies to…