The rise of AI in forex trading is transforming the landscape, bringing speed, efficiency, and data-driven decision-making to the forefront. AI-powered trading algorithms can analyze vast amounts of market data in real time, identifying patterns and executing trades faster than any human trader. One of the biggest impacts of #AITradingAffectsForex is increased market volatility. As AI-driven strategies react to price movements instantly, rapid fluctuations can occur, especially during major economic events. Additionally, AI enhances liquidity by executing trades at optimal prices, reducing bid-ask spreads. However, challenges exist. The reliance on AI can lead to "flash crashes" when multiple algorithms react to the same signals simultaneously. Moreover, human oversight remains crucial to prevent unintended consequences from AI misinterpretations .