What is the meaning of news events in the world of FX trading?

April 26, 2024

In an imaginary world where the flow of news is very much controlled by the mainstream media, it is natural to believe that there is an agenda behind the news. In that imaginary world, somebody is selling you a lie, trying to make you believe in it.
We all know that such things are not possible, that free speech is the norm, people discuss issues with common sense and respect for others. Humans are nice, caring for each other, live and let others live without domination. So beautiful.
But in that imaginary world, news is meant to control people, to influence public opinion, to manipulate and divide people. Pure evil caring for personal interest only. When it comes to the fx markets, the same entities are spreading false information and provide economic news that people want to believe have an impact on exchange rates.
Those who control the news flow, use it to achieve something along their agenda. Similarly, economic news releases could be used to achieve something along an agenda in the financial world. But it may be different from the type of news that is meant for the general public. Financial news may be completely factual and true. Although it may be news only to traders who are always a step behind the market, it is still undistorted news. But what if the lie they are trying to sell is that there is a connection between price movements and the actual economic performance figure shared during a news event. What if news releases only serve the purpose of moving price in favor of those who control it?
In this wonderful age of world peace and harmony I am glad that people do not even have to raise such questions. Our world is based on fair competition and equal opportunities. We all know that the imaginary world described above is not possible.
However, as a trader who believes that price movements are functional for a good reason, I do advice people to focus on the structure of price movements, instead of getting lost in whatever results news releases deliver. I have my ways to trade around news releases and those are all in line with the principles of trading the functions of price movements.