Any trader who plans to earn income from foreign exchange news must consider the results of previous expectations on the market. This suggests allowing for any movement which has already occurred in anticipation of the statement. We’ll take an example. Imagine that the US GDP is preparing to be published. You forecast the news will be good, so the dollar should rise. But if everybody else expects a similar thing, the dollar may already have risen in the hours and days before the announcement. Then maybe, when the GDP is essentially expounded, it seems not to have risen quite as much as people predicted. The news was still pretty good, but it did not reach the market’s expectancies.
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