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Old Versus Fresh News

The above Japanese example illustrates the power of efficient markets. The law of efficient markets that work effectively in Forex had already priced all the information I had used in my analysis. But, while old news has already been priced into the market, that doesn't mean fresh news can't move the markets. And in the Forex market, these fundamental events will create price change. Fresh news is any unforeseen event that can't be factored into the current price In addition, there is fresh news in pre-scheduled events such as speeches, interviews, news conferences of key figures, and pre-scheduled economic releases. (see Figures 10.1 and 10.2).

Figure 10.1. A clear example of how fresh news moves the Forex market.[1]



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