What are the implications of geopolitical events, such as wars, on currency values in the Forex market?
1
They lead to long-term appreciation of affected currencies due to increased demand
2
They typically generate increased uncertainty, causing depreciation due to capital flight
3
They have negligible effects as Forex markets are insulated from political influences
4
They necessitate immediate interventions by international financial institutions
5
They result in consistent strengthening of trade balances for the affected countries