I agree…one reason why the markets move opposite to the “fundamentals” is partly because decisions like these are priced in ahead of time. But as someone with a Masters in Economics and a former Central Bank Economist, I can tell yu that because most news releases are short-term data that varies from one month/week to the next, you will always have this issue of the market moving opposite to what it is “supposed to”.
Long-Term data is more reliable and is more in sync with the movements of currencies. But trying to use volatile data in the short-term is a hit and miss stressful activity. Yes you might capture a small gain as the market initially reacts in the expected way, but using this approach is unlikely to be something that can give you consistent, large Pip Gains.
This is why people like me use Candlestick Patterns on the Larger Time Frames, These Stable Signals tell us exactly where the market is headed with more precision because they also price in the net reaction of the market on the smaller time frames to the data/interest rate decisions released earlier in the day. So instead of trying to guess and trade the initial reaction - which often is a red herring - you simply calmly wait until the 4 H or Daily Chart has closed since they will reflect the more dominant reaction to the news item - whether its in sync with Economic Fundamentals or not.
So, at the end of the day, if you trade the Forex, it is really not necessary to know anything about Finance, Politics or Economics - ironically. Just need to know where to enter, where to place your stops and where to set your trading targets.
1. Have a Good Technical Based Strategy
2. Practice it on a Demo
3. Trade Calmly on a Live Account to your Targets, ignoring the distraction of Market News