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Originally Posted by fuzz.a
Hello, dear traders.
I’ve got some questions about the use of fundamental analysis on Forex and the influence of the news on the price movement. I’m engaged in trading for about 6 months, and yet I think that trading is not a game anymore but a hard work. Now I’m starting to understand the price behavior, my trading is still not good but I’ll never give up.
The thing I do not understand at all is the price movement on the news. It often happens that the price ignores news or even moves against them! The influence of news on the price is not explained in any of the classical books about trading, so could anyone explain it shortly, please?
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No one can explain the influence news has on price because all news and fundamentals are unique, in a unique economic environment. Some news is priced in prior to release, some is only relevant to other data already released or due to be released, some news is only relevant when compared to the counter currency's fundamentals. Fundamentals are extremely complex and market reaction sometimes even more complex, I do not believe it could ever be written in a book other than in very general terms. Market sentiment can change very quickly, right now the dollar is in the toilet but next week could be a whole different story!