Introduction
One major principle that drives volatility in the forex market today is that of demand and supply. When a high demand is made for a given currency, the value of that currency rises so fast in the market. This same principle will be expected to play out during the period of the FIFA World Cup 2022 where high demand for Asian currencies will be made by travelers moving into Asia to enable them to participate in the FIFA World Cup competition.
This work has therefore examined in detail the general effects the forthcoming FIFA World Cup will be expected to have on Forex trading. This will guide beginners who wish to trade forex with the best online trading brokers during the FIFA World Cup.
Forex trading and the FIFA World Cup 2022
An important long-awaited global event that is expected to have large impacts on Forex trading is the forthcoming FIFA World Cup 2022 slated to take place in Qatar from November 21 – December 18, 2022. The FIFA World Cup is often regarded as the second-largest sporting event in the world after the Olympics. The event will feature over 32 different countries as contenders in the sporting events.
During this event, all the players will need to travel to Qatar to participate. Aside from the players, various sports lovers including the business class, investors, football fans, etc will be traveling to Qatar to cheer up their countries and favorite players during the event. The event will probably attract over 100 Million visitors to Asia during the period of this event. These travelers probably will need to exchange their Currencies for Asian currencies. This means there will be high demand for Asian currencies, especially the Qatari Rial (QAR).
What effects will the FIFA World Cup have on Forex Trading?
The FIFA World Cup will probably cause great volatility in the Forex Market as travelers from various countries exchange their currencies for the local currency of the host country. The Asian currencies particularly the Qatari Rial will be expected to be the strongest beneficiary of this event. Other countries’ currencies outside the Asian country will be expected to be very volatile too. Most currencies will likely drop in value as investors shift their attention to the Asian countries.
The US dollar will likely benefit from this event given the fact that some travelers might prefer to convert their local currency into dollars while traveling and to spend in dollars too. This is because the US dollar has been made the standard means of exchange in the forex market today.
Which country’s currency will be the top beneficiary of the FIFA World Cup?
There are two major categories of currencies expected to benefit most from the imminent FIFA World Cup 2022. The first currency to benefit most from this event will be Asia currencies, especially the Qatari Rial which is the local currency of the host country. The reason for this is that all the travelers for the FIFA World Cup will need to convert their currencies into Asian currencies and lastly into the host country’s currency to be able to spend them when they get to Qatar.
The next significant country to benefit from the world cup will be the winners of the World Cup. The value of the FIFA World Cup reserved for the winners of the competition is one set to boost the country’s revenue and attract more investors into the country. This means we can expect the country’s currency exchange rate to rise massively once they are declared winners of the FIFA World Cup 2022.
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