Geopolitical events, such as elections, conflicts, trade negotiations, and international sanctions, can have a significant impact on forex markets. These events often lead to increased market volatility as they create uncertainty about the future economic and political environment. For instance, tensions between major economies can affect trade policies, leading to fluctuations in currency values. Elections and changes in government can also influence currency strength based on the anticipated economic policies of the new leadership. Traders closely monitor geopolitical developments to anticipate potential market reactions and adjust their trading strategies accordingly. Understanding the implications of these events is crucial for managing risk and making informed decisions in the forex market.