It is easy to get stucked in this trap when you read a particular economic news and tell yourself that it seems likely to make the market go in a certain direction. Once you convinced yourself that what you expect to happen is basically you digging for your account. In the early years of trading, many traders were stuck in the trap of trading in news and focused too much on fundamental analysis.
Trying to find out what the market is going to act next after the major economic reports are published appears to be obvious and useful to a trader at the time. However, you may be surprised to learn that the trader focuses too much on news that is losing money as prices tend to move in the opposite direction from what the news reflects.
Yes, you are right, I think the news distracts the speculators who have reviewed and understood the market to change their business decision or strategy by being carried away by the news. The news comes after the relevant events occur, never before, once the increase or fall of a price in a given currency or stock occurs, the reason is sought quickly, and often it is not the reason why it occurred.
The effect of a news does not determine the movement of the market, many owners of the news can be strong hands of the same market and there can be some kind of manipulation from there, and send to say good or bad news to help their movements. Normally, the good news is to help them sell and the bad news to help them buy cheaper causing people to panic, this can happen. The great speculator Jesse Livermore in his books always indicated that he stayed far from listening to the news, so as not to be distracted in the sense of his market analysis.