Friday, July 11, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    Microsoft Restructures Xbox and Sales Divisions Ahead of FY26: Fourth Wave of Layoffs Begins

    Microsoft Restructures Xbox and Sales Divisions Ahead of FY26: Fourth Wave of Layoffs Begins

    How to Use Chrome Developer Tools to Teach Math Logic

    How to Use Chrome Developer Tools to Teach Math Logic

    Cybersecurity

    How Software, Cybersecurity & VPNs Can Save You Money on Flights – Featuring VPNLY

    Is AI making Lewis Carroll’s Wonderland Weirder?

    Is AI making Lewis Carroll’s Wonderland Weirder?

    Gbyte Recovery

    Gbyte Recovery Review: Can It Restore Deleted iPhone Contacts?

    How to Resolve “Restore Failed” Error in QuickBooks Desktop?

    How to Resolve “Restore Failed” Error in QuickBooks Desktop?

    The Future of Business Transactions: Leveraging Electronic Data Interchange (EDI)

    The Future of Business Transactions: Leveraging Electronic Data Interchange (EDI)

    Tech Trends That Are Reshaping the British Economy in 2025

    Tech Trends That Are Reshaping the British Economy in 2025

    Revolutionary Haptic Technology Transforms Gaming Experience

    Revolutionary Haptic Technology Transforms Gaming Experience

  • Consumer
    Craving Connection: Why Food Gifting Is the New Love Language

    Craving Connection: Why Food Gifting Is the New Love Language

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to adjust glasses at home – a step-by-step guide!

    How to adjust glasses at home – a step-by-step guide!

    Why quality toilet cubicle hardware matters

    Why quality toilet cubicle hardware matters

    Common Mistakes in KYC Identity Verification

    Common Mistakes in KYC Identity Verification

    Consumer habits

    British Furniture Market Sees Significant Changes in Consumer Preferences

    Why are high-street bookmakers declining in the UK?

    Why are high-street bookmakers declining in the UK?

    Straps for smartwatches: The Complete guide

    Straps for smartwatches: The Complete guide

    High street retailers are at a “crossroads”, says retail tycoon

    High street retailers are at a “crossroads”, says retail tycoon

  • Finance
    Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed

    Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed

    How to Use Real-Time Gold Charts for Better Trading Decisions

    How to Use Real-Time Gold Charts for Better Trading Decisions

    Rejoining Europe: What could it mean for the British economy?

    Rejoining Europe: What could it mean for the British economy?

    Understanding Finance and Why It Matters in Everyday Life

    Understanding Finance and Why It Matters in Everyday Life

    A Simple Guide to Buying Bitcoin for First-Time Investors

    A Simple Guide to Buying Bitcoin for First-Time Investors

    VPS Low Latency: Why It’s Important for Forex Traders

    VPS Low Latency: Why It’s Important for Forex Traders

    How AI Is Reshaping Financial Advising

    How AI Is Reshaping Financial Advising

    How Geopolitical Tensions Affect Forex Trading

    How Geopolitical Tensions Affect Forex Trading

    Steel Prices

    Where Steel Prices Have Been Headed: A Six-Month Look at Global Trends

  • Environment
    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Environmental Benefits

    What Are The Environmental Benefits Of Choosing Eco-friendly Rubbish Removal In Croydon?

    Why You Should Hire Waste collectors for efficient waste removal

    Why You Should Hire Waste collectors for efficient waste removal

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

  • Property
    Property Investment Strategy

    Interest Rate Hikes and How They Impact Your Property Investment Strategy

    How Local Storage Services Make Home Organisation Easy

    How Local Storage Services Make Home Organisation Easy

    Stay safe at home: The benefits of intruder alarms in St Helens

    Stay safe at home: The benefits of intruder alarms in St Helens

    Enhancing your home projects with essential hardware selection tips

    Enhancing your home projects with essential hardware selection tips

    5 Best Lifetime Mortgage Providers in the UK

    5 Best Lifetime Mortgage Providers in the UK

    Top 10 Sell House Fast Companies in the UK

    Top 10 Sell House Fast Companies in the UK

    Efficient storage solutions for stress-free home renovations

    Efficient storage solutions for stress-free home renovations

    Chelsea Residences – Exclusive Living in Dubai’s Prime Location

    Chelsea Residences – Exclusive Living in Dubai’s Prime Location

    Insights and Opportunities For Exploring the London Property Market

    Insights and Opportunities For Exploring the London Property Market

  • eCommerce
    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    The Importance of Digital Valuations for UK Ecommerce Brands

    The Importance of Digital Valuations for UK Ecommerce Brands

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    Amazon Expert

    Amazon Expert: Key Qualifications to Look For

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Personalized Shopping: How Technology is Transforming Retail

    Personalized Shopping: How Technology is Transforming Retail

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    Magento Web Development Company: Unlocking the Power of E-Commerce

    Magento Web Development Company: Unlocking the Power of E-Commerce

No Result
View All Result
Today News
Home Finance

How Geopolitical Tensions Affect Forex Trading

David Prior by David Prior
June 18, 2025
Reading Time: 6 mins read
How Geopolitical Tensions Affect Forex Trading

Closeup Benjamin Franklin face on USD banknote with stock market chart graph for currency exchange and global trade forex concept.

502
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

In an increasingly globalized world, geopolitical tensions such as military conflicts, trade wars, or diplomatic stand-offs can have swift and severe impacts on financial markets. Among the most reactive of these markets is Forex (foreign exchange), where currency values can shift dramatically in response to global uncertainty.

For traders and investors, understanding how to navigate the Forex market during these periods is crucial. While tensions often bring volatility, they also open the door to strategic opportunities.

Related posts

Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed

Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed

July 4, 2025
61
How to Use Real-Time Gold Charts for Better Trading Decisions

How to Use Real-Time Gold Charts for Better Trading Decisions

July 2, 2025
457

What is Forex Trading?

Forex trading involves buying and selling currencies with the goal of making a profit. Unlike the stock market, the Forex market operates 24 hours a day, five days a week, allowing traders to respond to global economic events in real-time.

Traders speculate on currency pairs like EUR/USD, GBP/JPY, and others, aiming to profit from fluctuations in exchange rates. The market is influenced by various factors including interest rates, political stability, economic performance, and global events.

A Real-Time Barometer of Global Sentiment

During geopolitical crises, this responsiveness makes the Forex market a valuable platform for both hedging risks and speculating on macroeconomic shifts.

Let’s explore how Forex trading can be effectively utilized during turbulent geopolitical times.

1. Hedging Against Currency Risk

For businesses and investors with international exposure, Forex trading can serve as a risk management tool. Currency values often react sharply to geopolitical events. A politically unstable country might see its currency depreciate rapidly, impacting importers, exporters, and cross-border investments.

Example:

A European company expecting payments in USD may choose to trade EUR/USD to protect against potential dollar depreciation. In doing so, they create a buffer against currency losses triggered by geopolitical news.

2. Safe Haven Currency Strategies

Periods of political or military unrest typically drive investors toward safe haven currencies that are perceived as stable and secure. These include:

  • USD (U.S. Dollar) – The world’s reserve currency.
  • CHF (Swiss Franc) – Known for Switzerland’s neutrality and robust financial system.
  • JPY (Japanese Yen) – Historically favored in times of risk aversion.

Traders can capitalize on this behavior by buying these currencies against more vulnerable ones, anticipating capital flows from risk-off sentiment.

3. Trade Smart with XTB

XTB is one of the world’s leading Forex and CFD brokers, offering:

  • Free, in-depth Forex education for beginners and advanced traders alike.
  • Live and on-demand webinars covering strategy, analysis, and macroeconomic insights.
  • The award-winning xStation 5 trading platform, with real-time news, advanced charts, and risk management tools.
  • Over 8,000 instruments to choose from, including Forex pairs, indices, stocks, commodities, and ETFs, giving you the flexibility to diversify and react across markets during times of geopolitical uncertainty.

Whether you’re looking to hedge risk, trade volatility, or gain deeper insights into global financial flows, XTB provides the knowledge and infrastructure to support your trading goals.

4. Speculative Trading on Volatility

Volatility tends to surge during geopolitical uncertainty, creating short-term trading opportunities for skilled Forex traders. News-driven moves such as a sanctions announcement or a ceasefire can send currency pairs soaring or tumbling within minutes.

Speculative strategies include:

  • Trading breakout patterns.
  • Using straddle options.
  • Applying short-term momentum indicators.

However, volatility cuts both ways, so risk management tools like stop-losses and proper leverage are critical.

5. Following Commodity-Linked Currencies

Geopolitical events often impact commodities like oil, gold, and gas. Since several currencies are closely tied to these resources, geopolitical shocks can indirectly influence Forex markets.

Watch these pairs:

  • CAD (Canadian Dollar) – Strongly correlated with oil prices.
  • AUD (Australian Dollar) – Tied to global demand for minerals and metals.
  • NOK (Norwegian Krone) – Oil-exporting economy dynamics.

For instance, during a conflict that threatens Middle Eastern oil supply, rising crude prices might strengthen the Canadian dollar.

6. Anticipating Central Bank Reactions

Geopolitical instability often forces central banks to intervene or adjust policy in response to currency pressure, inflation concerns, or capital flight. Forex traders who monitor these moves closely can gain a valuable edge.

Expect:

  • Emergency interest rate decisions.
  • Currency interventions (buying or selling reserves).
  • Verbal guidance (forward-looking statements).

For example, during major disruptions, a dovish shift by a central bank may weaken the local currency, signaling a potential trade setup.

Real-World Case: Russia-Ukraine Conflict

When Russia invaded Ukraine in 2022:

  • The Russian Ruble (RUB) plummeted before recovering through strict capital controls and central bank action.
  • The USD and CHF surged as safe haven demand spiked.
    The Euro (EUR) weakened due to Europe’s proximity and energy dependence.

Traders who understood these dynamics were able to position themselves early in one of the most volatile market periods in recent years.

Proceed with Caution

While opportunities are present, so are the risks:

  • Liquidity can thin out during high-stress events, widening spreads.
  • Market gaps may bypass stop orders.
  • Emotions run high, increasing the chance of impulsive decisions.

By strengthening your Forex foundation, you’ll be better equipped to manage uncertainty and potentially thrive when geopolitical tensions arise.

Conclusion

Geopolitical events are inevitable. But with the right knowledge and tools, Forex traders can respond strategically rather than emotionally. By leveraging safe havens, hedging strategies, and real-time analysis, you can transform market turbulence into opportunity.

Explore how to get started with confidence at XTB’s Forex education center today.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

Previous Post

How Tyre Choice Impacts Your Safety Year-Round: A Guide For Owners

Next Post

How Smartphones Changed Entertainment

Related Posts

Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed
Finance

Card-to-Card as P2P Payment Infrastructure for E-commerce Platforms: Faster, Safer, No Bank Account Needed

July 4, 2025
61
How to Use Real-Time Gold Charts for Better Trading Decisions
Finance

How to Use Real-Time Gold Charts for Better Trading Decisions

July 2, 2025
457
Rejoining Europe: What could it mean for the British economy?
Finance

Rejoining Europe: What could it mean for the British economy?

July 1, 2025
444
Understanding Finance and Why It Matters in Everyday Life
Finance

Understanding Finance and Why It Matters in Everyday Life

June 25, 2025
50
A Simple Guide to Buying Bitcoin for First-Time Investors
Finance

A Simple Guide to Buying Bitcoin for First-Time Investors

June 25, 2025
483
VPS Low Latency: Why It’s Important for Forex Traders
Finance

VPS Low Latency: Why It’s Important for Forex Traders

June 25, 2025
386
Next Post
How Smartphones Changed Entertainment

How Smartphones Changed Entertainment

RECOMMENDED NEWS

Kraft Doypack: The Ideal Eco-Friendly Packaging Solution

Kraft Doypack: The Ideal Eco-Friendly Packaging Solution

3 months ago
370
PTE score

What’s the required PTE score for PHD in Australia?

10 months ago
477
Casino Betting and Casino Chips

Mostbet Turkey Welcome Bonus: Your Chance to Start with Maximum Benefit

9 months ago
405
Freight Costs

8 Simple Ways to Reduce Freight Costs For Your Business with Silo

12 months ago
494

BROWSE BY CATEGORIES

  • Business
  • Careers
  • Charity
  • Consumer
  • Culture
  • eCommerce
  • Education
  • Energy
  • Engineering
  • Entertainment
  • Entrepreneurs
  • Environment
  • Fashion
  • Finance
  • Food & Drink
  • Gaming
  • Gardening
  • Health
  • Insurance
  • Interiors
  • Legal
  • Leisure
  • Lifestyle
  • Manufacturing
  • Marketing
  • National
  • News
  • Opinion
  • Pets
  • Politics
  • Property
  • Sales
  • Sport
  • Sports
  • Tech
  • Transport
  • Travel
  • Uncategorized

BROWSE BY TOPICS

Agency AI autosmart banking Beauty business Christmas construction cyber security data digital Digital Marketing Services ecommerce entertainmnet finance fitness health inflation insurance kitchen KYND lifestyle manchester music News north overseas Personal Injury Pharmaceutical Industry property Real Estate recruitment Sir Michael Morpurgo Skincare sports technology The Victoria Quarter tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Pastor Chris Net Worth: Influence, Ministry, and Global Impact

Pastor Chris Net Worth: Influence, Ministry, and Global Impact

July 10, 2025
The Best Slots Released in Recent Years

The Best Slots Released in Recent Years

July 10, 2025
Iconic Footballers You Didn’t Know Are Still Playing in 2025

Iconic Footballers You Didn’t Know Are Still Playing in 2025

July 10, 2025
Property Investment Strategy

Interest Rate Hikes and How They Impact Your Property Investment Strategy

July 10, 2025
Sanctuary

From Storage to Sanctuary: Reimagine Your Garden Shed as a Beautiful Outdoor Retreat

July 10, 2025
Chiller Hire

How Chiller Hire Saves Money in 8 Simple Ways

July 10, 2025
Wellness

Effective Emotional Wellness Strategies to Support Seniors Daily

July 10, 2025
What Sets Luxury Villa Rentals Apart from Standard Hotels

What Sets Luxury Villa Rentals Apart from Standard Hotels

July 10, 2025
How Local Storage Services Make Home Organisation Easy

How Local Storage Services Make Home Organisation Easy

July 10, 2025
Which Casino Games Should You Play Online?

Which Casino Games Should You Play Online?

July 10, 2025

Today News

  • About
  • Write for us
  • Contact
  • Privacy Policy

@2024 Rooftree Publishing Ltd

Today News in association with Kajino.com

Sign up for our newsletter




  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce

Recent News

Pastor Chris Net Worth: Influence, Ministry, and Global Impact

Pastor Chris Net Worth: Influence, Ministry, and Global Impact

July 10, 2025
The Best Slots Released in Recent Years

The Best Slots Released in Recent Years

July 10, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact