The document outlines the differences between news trading and forex fundamental analysis, emphasizing that news trading focuses on market surprises, while fundamental analysis revolves around long-term economic indicators. It notes that news traders do not often consider past releases, whereas fundamental analysts use them as benchmarks. The document suggests that understanding these differences can improve trading strategies and emphasizes the importance of tools like fundamental outlook scores to make informed decisions.

1. The Differences Between News Trading And Forex Fundamental Analysis
Forex Fundamental Analysis is usually an intimidating subject for Forex traders and let’s face it, it’s much easier to look at
some technical indicators, moving average crosses, or Fibonacci retracements rather than “reading between the lines” on
Bernanke’s 22-minutes speech and make split-second trading decisions.
But the same could be said about Technical Analysis methods such as the Elliot Wave theory or the infamous Neural
Network based trading, and the conclusion is that in order to master either Fundamental or Technical Analysis, it would
require investments of both time and efforts…
The Differences Between News Trading And Forex Fundamental Analysis (Courtesy of HenryLiuForex.com)

2. The Differences Between News Trading And Forex Fundamental Analysis
That’s why FundamentalForexOutlook.com was created, its goal is to make the daunting task of Forex
fundamental analysis bearable for the average Forex trader, by providing you with the right tools such as:
breaking news, commentaries, historical charts, and fundamental scores at your fingertips, helping you make the
right trading decisions.
Before we dive into the deep end, let’s just take a second to define the differences between Forex News Trading
and Forex Fundamental Analysis, because for a lot of people, they are one and the same, but that couldn’t be
further from the truth. Here are some important differences:
The Differences Between News Trading And Forex Fundamental Analysis (Courtesy of HenryLiuForex.com)

3. The Differences Between News Trading And Forex Fundamental Analysis
1. News trading in a nutshell is trading based on
surprises, it may or may not have anything to do
with fundamental analysis, as it is primarily based
on the market perception and psychology by
comparing the forecast/actual releases at the
time. But Forex Fundamental Analysis accounts
for the overall outlook of particular currency
based on its economic indicators (such as GDP,
CPI, PMI, Trade Balance, etc…), monetary policy,
and other breaking news that affects the longer-
term value of the currency, i.e. Outlook.
2. Another interesting difference between News
Trading and Forex Fundamental Analysis is that
News traders seldom consider prior releases
unless there are significant revisions, but for
fundamental analysts, prior releases are starting
points of comparison, and a better than prior
release figure is usually considered positive,
regardless of the news release forecast… Of
course this may present some conflict with Forex
news trading, but just remember that
fundamental outlook is for the long-term; think
of it as gravity, it’s always there… Market may be
driven by other forces temporarily, but it will
eventually fall back in the direction of
fundamentals.
The Differences Between News Trading And Forex Fundamental Analysis (Courtesy of HenryLiuForex.com)

4. The Differences Between News Trading And Forex Fundamental Analysis
3. Fundamental Analysis does not change often, and unlike news trading where the market could become
volatile immediately after a news release, fundamental outlook remains unchanged (most times) unless there are
significant evidence in both market sentiment and concrete economic data… The rule of thumb is that unless there
are reasons to change our view, we don’t.
In conclusion, by understanding the basic difference between Forex news trading and Forex Fundamental Analysis
and by using FundamentalForexOutlook.com, it will help you stay on the right side of the market by giving you the
tools you need. You can trade currencies with strong Outlook Score against currencies with weak scores, especially
from a longer-term point of view. The advantage of the Outlook Score is that when a currency is going against it, it
usually will come back, giving you a golden opportunity to place your longer-term trade based on fundamental
trend…
The Differences Between News Trading And Forex Fundamental Analysis (Courtesy of HenryLiuForex.com)