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Forex Trading and the World Cup

Forex Trading and the World Cup

The football World Cup brings together nations from all over the globe. Since currency trading involves countries from around the world, it’s logical to think there would be some crossover. This notion is supported by market analysis and science. The World Cup has an impact on currency trading. How does it work?

The WC Effect

An analysis of previous World Cups shows that trading volume in a country with a team is significantly lower than that of another. Trade volume in any country is likely to drop by 55% as traders are likely to be watching the game. Even in the US where football is called soccer and isn’t the most popular sport, trading volumes dipped by 43% while the US team was playing.

Qatar is, naturally, ahead of Europe in terms of time zones. As such, a large portion of the games are scheduled to be played during European trading hours and another part will be held during US trading hours. The first game will be played at 15:00 British Time on November 21. Later in the day the US faces Wales at 14.00 New York time.

Future prediction

In the past, lower trading volumes at the World Cup have generally led to higher volatility. This is not a rare…

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