Lucas Anthony T271 Sanchez#4

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How do geopolitical events shape forex fundamentals?

Wars, elections, and trade disputes create uncertainty, driving safe-haven flows. For instance, Russia’s invasion of Ukraine boosted USD and CHF as investors fled risk. Institutions model political risks with scenario analysis, while retail traders can monitor global headlines for volatility triggers. Benefits: political shocks create strong, tradable moves. Risks: unpredictability and gaps. Geopolitics proves forex is not just economics—it is also about global stability and trust. Successful traders factor in political calendars alongside economic ones.