Liquidity vacuums right after data can last longer than expected

[Amanhasnoname]

After a major release, spreads often stay wider than normal for several minutes. Depth rebuilds slowly as liquidity providers wait to see where price settles.

During that window, orders move price more than usual. A small trade can push the quote by a pip or two, and stops cluster in thin areas. The market feels fast, but the fills are poor.

A tempting mistake is entering the moment the spread starts to narrow. It often narrows from 8 pips to 3, which is still several times the normal level and far too expensive for a short target.

Waiting for spreads to return to within 20 or 30 percent of normal is a stricter and safer rule. It costs a few minutes and avoids paying a premium on every trade.

Monitoring spreads continuously during the post-news period gives a better read than relying on a clock.

How long does the spread typically take to normalise after the main releases on your pairs?