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🌍 Overview of the Future of Currency Trading
1. Fluctuations Arising from Global Geopolitical and Environmental Events
Markets are experiencing a high degree of uncertainty due to trade tensions (such as impending protectionist policies), elections in Europe, conflicts in the Middle East, and climate change. These events lead to sharp fluctuations in currency prices, especially in pairs linked to emerging economies or reliant on oil such as USD/CAD.
2. **Weakening Dollar and Challenges of the "Reserve Currency"**
The dollar recorded a decline of about 10% during the first half of 2025, the largest drop since the 1970s.
There is increasing concern that political decisions and pressures, such as the replacement of the Federal Reserve Chair, could undermine confidence in the dollar and lead to a "currency war."
3. Shift Towards Diversifying Reserves with Gold and Yuan
Central banks around the world are increasingly focusing on gold and other currencies such as the yuan and euro. This comes amid projects for digitization such as the Chinese digital currency e-CNY and CIPS.
4. Artificial Intelligence Technology and a Shift in Trading Methods
Reliance on automation and artificial intelligence in trading is rapidly increasing; 51% of institutions expect a significant impact from AI within three years.
Technologies such as artificial intelligence (LSTM, DRL) have become more accurate in predicting currency price movements (with targets exceeding 99% in some studies).