Any trader who plans to earn money from currency exchange news must take into consideration the effect of previous expectancies on the market.
Let us take an example. Imagine that the US GDP is getting ready to be published. You forecast the news will be good, so that the greenback should rise. However, if everyone else expects the same, the dollar may already have risen in the hours and days before the statement. Then perhaps, when the GDP is actually voiced, it turns out not to have increased quite as much as folk expected. So in that scenario, the buck might actually fall. The alternative to trading with the aim of making money from reports news is, naturally, to stay clear of the market any time that a major announcement is due. Most traders who depend on technical analysis for their foreign exchange trading systems opt for this approach and it is highly recommended that newbs do this. You want considerable experience as a forex trading to earn income from the price fluctuations around forex trading news.