Thursday, July 31, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    Why eSIMs Are a Game Changer for Remote Workers

    Why eSIMs Are a Game Changer for Remote Workers

    Ways to Share Video Content Without Internet Access

    Ways to Share Video Content Without Internet Access

    Why UK Grant Management Software Is Essential for NGOs

    Why UK Grant Management Software Is Essential for NGOs

    One App, Infinite Uses: How Revolut Is Reshaping Online Transactions

    One App, Infinite Uses: How Revolut Is Reshaping Online Transactions

    VPNs

    Households and VPNs: The New Normal in Digital Protection

    How Are Facial Recognition Technologies Transforming the Betting Experience in London’s Live Casinos

    How Are Facial Recognition Technologies Transforming the Betting Experience in London’s Live Casinos

    Real-Time AML Checks: Why Speed Matters in Compliance

    Real-Time AML Checks: Why Speed Matters in Compliance

    Will the iPhone 17 Pro Compete with Samsung’s Best Handsets?

    Will the iPhone 17 Pro Compete with Samsung’s Best Handsets?

    First-Person Filming: Mini Cameras Transform Storytelling

    First-Person Filming: Mini Cameras Transform Storytelling

  • 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
    Fintevex.io vs The Rest: What Happened When We Put It to the Test

    Fintevex.io vs The Rest: What Happened When We Put It to the Test

    5 Smart Money Moves For Dynamic People

    5 Smart Money Moves For Dynamic People

    What Is a Payment Gateway and Why Your Business Needs One

    What Is a Payment Gateway and Why Your Business Needs One

    How Ethereum is changing things in the business world in 2025

    How Ethereum is changing things in the business world in 2025

    Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective

    Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective

    Everything You Need to Know About Multi-Million Loans

    Everything You Need to Know About Multi-Million Loans

    Fueling Growth: How a UK Gambling License Boosts Investor Confidence

    Fueling Growth: How a UK Gambling License Boosts Investor Confidence

    MiCA vs. GENIUS: Europe’s Crypto Surge

    MiCA vs. GENIUS: Europe’s Crypto Surge

    Why FOMO Still Drives the Crypto Crowd

    Why FOMO Still Drives the Crypto Crowd

  • Environment
    Five Ocean Discoveries That Could Change How We See the World

    Five Ocean Discoveries That Could Change How We See the World

    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

  • Property
    Budgeting for a House Sale: What Most Sellers Forget

    Budgeting for a House Sale: What Most Sellers Forget

    Home and business removals: Streamlining your move

    Home and business removals: Streamlining your move

    Maximizing Your Investments: A Guide to Purchasing Villas for Sale in Dubai 2025

    Maximizing Your Investments: A Guide to Purchasing Villas for Sale in Dubai 2025

    6 Common Admin Mistakes that Property Managers Make

    6 Common Admin Mistakes that Property Managers Make

    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

  • 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.

513
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

Fintevex.io vs The Rest: What Happened When We Put It to the Test

Fintevex.io vs The Rest: What Happened When We Put It to the Test

July 29, 2025
434
5 Smart Money Moves For Dynamic People

5 Smart Money Moves For Dynamic People

July 28, 2025
486

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

Fintevex.io vs The Rest: What Happened When We Put It to the Test
Finance

Fintevex.io vs The Rest: What Happened When We Put It to the Test

July 29, 2025
434
5 Smart Money Moves For Dynamic People
Finance

5 Smart Money Moves For Dynamic People

July 28, 2025
486
What Is a Payment Gateway and Why Your Business Needs One
Finance

What Is a Payment Gateway and Why Your Business Needs One

July 21, 2025
558
How Ethereum is changing things in the business world in 2025
Finance

How Ethereum is changing things in the business world in 2025

July 21, 2025
381
Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective
Finance

Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective

July 21, 2025
41
Everything You Need to Know About Multi-Million Loans
Finance

Everything You Need to Know About Multi-Million Loans

July 18, 2025
413
Next Post
How Smartphones Changed Entertainment

How Smartphones Changed Entertainment

RECOMMENDED NEWS

Four Home Improvements Every Homeowner Should Consider When Adding Value To A Property

Four Home Improvements Every Homeowner Should Consider When Adding Value To A Property

4 years ago
84
Revolutionizing Beauty: Istanbul, Turkey Leads the Way in Afro Hair Transplants

Revolutionizing Beauty: Istanbul, Turkey Leads the Way in Afro Hair Transplants

2 years ago
290
Exploring the Role of Genetics in Cannabis Seed Quality

Exploring the Role of Genetics in Cannabis Seed Quality

4 months ago
561
Web Design

Transforming Your Online Presence: Custom Web Design and Development

8 months ago
485

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 Forex 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 tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Reapplying Perfume

How to Smell Good After the Gym Without Reapplying Perfume?

July 31, 2025
Health Checks

Why Regular Website Health Checks Are Crucial for Online Success

July 31, 2025
Verida AFI Reviews: How a UK Legal Firm Helps Recover Money Stolen via Dating Apps

Verida AFI Reviews: How a UK Legal Firm Helps Recover Money Stolen via Dating Apps

July 31, 2025
What Can a Student Do to Improve Their Assignments

What Can a Student Do to Improve Their Assignments

July 31, 2025
Why eSIMs Are a Game Changer for Remote Workers

Why eSIMs Are a Game Changer for Remote Workers

July 31, 2025
Can You Build Trust in a Relationship Without Ever Meeting In Person?

Can You Build Trust in a Relationship Without Ever Meeting In Person?

July 31, 2025
Fletrade.com review: Trade Fast, Stay Sharp, and Keep Moving

Fletrade.com review: Trade Fast, Stay Sharp, and Keep Moving

July 31, 2025
Driving Innovation: How American Laser Welders Adapt to Modern Manufacturing

Driving Innovation: How American Laser Welders Adapt to Modern Manufacturing

July 30, 2025
Flexible Space

Why Self Storage Ras Al Khaimah Is the Smart Choice for Secure, Flexible Space

July 30, 2025
Ways to Share Video Content Without Internet Access

Ways to Share Video Content Without Internet Access

July 30, 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

Reapplying Perfume

How to Smell Good After the Gym Without Reapplying Perfume?

July 31, 2025
Health Checks

Why Regular Website Health Checks Are Crucial for Online Success

July 31, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact