Any trader who plans to earn money from foreign exchange news must take into account the effects of previous expectancies on the market. This suggests allowing for any movement that has already happened in expectation of the statement. Let’s take an example. Imagine the US GDP is getting ready to be declared. You predict the news will be good, so that the dollar should rise. However, if everybody else expects the same, the greenback may already have risen in the hours and days before the announcement. So in that case, the dollar might essentially fall. The news was still very good, but it didn’t reach the market’s expectations.

The choice to trading with the purpose of making money from news news is, naturally, to stay clear of the market any time a major announcement is due.