when i am looking for fundamental news, do i only need to Watch the Forex calender (economic calender) in babypips and look for the forecast and and actual.
First i trade the market based on forecast, then when then actual happens, i trade the market the actual for the short run.
I suggest you look at both since the actual vs. consensus provides an idea of whether the report was a disappointment or not while the actual vs. previous shows if the report indicated an improvement. More often than not, a better-than-expected read plus an improvement over the previous report has a stronger upside effect on a currency and vice versa.
+1 on what PipDiddy has said. Keep in mind that the bigger the surprise/disappointment is from expectations the bigger the following move will (usually) be. Also in plenty of reports you need to dig a lot deeper than the headline figure. For example with the NFP report you need to really read the report and understand it in order to comprehend what your chart shows you. With many other report’s it is the same. This (partially) explains the wild see-saw trading which follows right after the report is released.
The above is all fine, but you really need to take it one level further. Ask the question, “What is the market discounting?”. A surprise in an economic release is only really a surprise if the market hasn’t been looking for it. If the market expects the surprise, then you won’t get the kind of reaction you might expect.
Trading news is not that simple as it may look like. At news times you may find that market get the biggest augment of hunters like you 
with DIFFERENT positions, lots, SL and TP set, software performance and of course, skills.
Years before news trading was a mere clash of sentiments, both bulls and bears, they just tried to predict where the price would go and bet on it. Now it turned to real manipulation, because at these moments market is weak, I mean very unstable, and knowing approximate SL of most traders any big player can easily trigger them and then forcing price to move in their favorable direction by chain reaction (bulls or bears exit game by SL, market sentiments were manipulated successfully). Talking about this I mean the famous “whipsaw” movement when smart “straddlers” and other players are pushed out by false movement, although general direction of the price after news releases were guessed correctly.
News trading becomes the confrontation of capitals and you can barely find the place for small traders like us. Be careful and try to concentrate on trading setup and MM rather than "economic calendar"
Cheers.
Hail Magneto-PipMagnet 
Trading the news not as that simple nowdays, can i say ‘PA is the KING’ ~ News has many noises, you’ve been warned :).
Happy Surf.
Interesting question and good responses. Adding my two cents, I think i’ll reiterate by saying that news trading is not a binary event, although there are a few events where this could be true… the ‘surprise factor’ plays a big role, but it isn’t that simple. What you and I think may be surprising would be something that markets would view as ‘within its deviation’
Sometimes price gets very bullish or bearish on what would have been a normal news and other times price does the opposite. There are many examples, but i’ll share this GBPUSD April 28th advance GDP estimates. Despite a disappointing print, GU just rallied.
This, at a time when it was pre-election season. Of course, there are numerous ways to justify this rally in hindsight, but in the heat of the moment, that GU short would have been disastrous. Other examples that I recollect was one EURCAD where Canadian GDP tanked big time but EURCAD continued to fall (sometime last year or).
Its all about sentiment and how the larger players feel at that point in time.
One quote that stuck with me watching one of the many trading documentaries is this:
“The markets don’t bother about what happened yesterday or 5 minutes ago, the markets constantly look what the next 5 minutes (figuratively speaking) hold”
