When it comes to trading currencies in the foreign exchange market, there are two main complementary strategies used by investors, often at the same time: while technical trading focuses on statistic and probabilistic indexes to help predict the future trend of a currency pair, the second technique, fundamental trading, uses financial news to achieve the same goal.

Buying the Rumor and Selling the Fact

Trading financial news in the context of the forex market is often associated with the concepts of "buying the rumor" and "selling the fact". This is because, in this highly volative market, the effects of financial news tend to manifest themselves before the events actually take place.

Unlike the stock market, in fact, the vast majority of news in the world of forex trading are pre-scheduled national press conferences and reports which are typically updates on one or more of the following topics: