Any trader who plans to earn income from currency exchange stories must take into consideration the effect of prior expectations on the market. This suggests allowing for any movement which has already happened in anticipation of the announcement.
Let’s take an example. Imagine the US GDP is getting ready to be announced. You forecast the news will be good, so the greenback should rise. Then maybe, when the GDP is really announced, it seems not to have increased quite as much as folk expected. So in that situation, the buck might basically fall. The news was still pretty good, but it didn’t reach the market’s expectations.
The choice to trading with the aim of making money from stories news is, of course, to stay out of the market any time a major announcement is due. Most traders who rely on technical research for their forex trading systems opt for this approach and it’s strongly recommended that beginners do this.