The World Cup 2022 has begun, but how will it affect forex trading?

About the World Cup 2022

The World Cup 2022 kicked off in Qatar on 20 November 2022. It will last until 18 December 2022. The 2022 FIFA World Cup is an international association football tournament contested by the men's national teams of FIFA's member associations and the 22nd FIFA World Cup. This is the first World Cup to be held in the Arab world.

Concerning the Middle East

Despite the pandemic and worldwide recession, the Middle East has still maintained decent economic growth, and it has become one of the richest and fastest-growing regions in the world for a few decades. Time zones in the Middle East allow traders to catch the best market opening times in the world. We can see a lot of potential opportunities in the forex market of the Middle East.

WikiEXPO and Middle East

Due to the advantage that the Middle East has, the Wiki Finance Expo Dubai 2022 has taken place as scheduled in Dubai on Sep 25-26. 2022. And the Expo has wrapped up successfully. This is the first time that WikiFinance EXPO was held in the Middle East. WikiExpo, founded in 2019, is the event management arm under the WikiGlobal and WikiFX group by organizing global series of financial events for the finance and trading industry worldwide. It drew over 5,000 visitors and 40+ sponsors, as well as dozens of guest speakers whose presentations kindled enthusiastic responses from the audiences. This Expo brings the latest and hottest topics in the foreign exchange market and many practical trading tips in financial investment. You can check the highlights by clicking this link. https://www.wikifx.com/en/newsdetail/202209265464264164.html

The World Cup 2022 impact on forex trading

The Middle East is a perfect market for forex trading. However, did the World Cup event really enhance the forex market globally？

Addiction

Due to the time zone of Qatar, many games that will be focused worldwide will take place during European trading hours and American trading hours. Many forex traders in the West will watch the tournaments instead of trading forex. Based on the analysis of the previous FIFA World Cups, the trading volumes in that country whose team participated in the World Cup tournaments have fallen sharply. On average, trading in the West will fall by half because of the attraction of the World Cup. Even in some countries where football isnt the most popular sport, trading volumes dropped substantially while their teams were playing.

Higher volatility

lower trading volumes in the World Cup generally translated into higher volatility. This is a common phenomenon when there are fewer traders in the market, liquidity is less. So individual trades can move the market more.

The “Mood” of traders

The mood of traders is significantly relevant in forex trading results. If a team that one trader supports lost during the game, initially affects the investors trading performance negatively. A Study of the 2010 World Cup by Dartmouth showed that CFD markets (like forex) declined an average of 0.4% following the loss of a national team.

Conclusion

WikiFX wants to remind something you may not note as the World Cup 2022 is in full swing. But the impact of this event on Forex trading cannot be ignored. We hope all traders can enjoy the tournament at the same time don't forget to check WikiFX App for the more latest news.