The efficient market hypothesis states that prices of financial assets adjust instantaneously to all relevant news. Forex and more specifically Currency exchange seems to be the natural candidates for an efficiency test. We expect that such markets are very efficient as a consequence of the large liquidity...
Lying behind this EMH is the assumption that prices are fully flexible and thus any 'shock' to the market causes a change in price and quantity as the market moves to a new equilibrium. In other words, markets are assumed to be 'flex price' in contrast with 'fix price markets'. [...]
it does not mean that there is no way to define profitable trades on the Forex markets. Along this report, we have indeed introduced a key element that opens a new window in financial analysis: what is a ‘relevant’ information? This is the most important point and the discussion about EMH leads us to a better understanding of this idea […] the safe investor must do the correct folding… | 
