World Tensions Shake Currencies, Forex Traders on Edge
The forex market is facing big ups and downs as global tensions grow. Political problems between countries are now hitting currencies fast and hard.
Trade Fights and Sanctions Change Money Flows
The US and China are back in a trade fight, with new taxes on goods and limits on tech. Sanctions on Russia are forcing it to trade more with friendly countries instead of using the usual markets.
Some Middle East countries are also trying to sell oil in their own currencies instead of the US dollar. Japan and South Korea are stepping in to control their currencies so their exports stay competitive.
Safe and Risky Currencies
When trouble starts—like military tensions in Eastern Europe or the South China Sea—investors run to safe currencies such as the US dollar, Swiss franc, and Japanese yen.
Currencies linked to raw materials, like the Australian dollar or Canadian dollar, usually fall in such times. Currencies from smaller economies can drop even faster.
Impact:
* Big political news can now move currency prices within minutes.
* New currency partnerships may appear as countries try to trade without using the dollar.
