Forex SSR 4

Any trader who plans to earn money from currency exchange news must take into account the effects of prior expectations on the market.

Let’s take an example. Imagine the US GDP is about to be published. You forecast the news will be good, so the dollar should rise. However, if everybody else expects the same thing, the dollar may already have risen in the hours and days before the announcement. Then maybe, when the GDP is essentially expounded, it turns out not to have increased quite as much as folk expected. So in that scenario, the dollar might actually fall. The news was still very good, but it did not reach the market’s expectations. Most traders who rely on technical analysis for their currency trading systems opt for this approach and it’s highly recommended that newbs do this.