AI-driven analysis of social media impact on Forex trading helps traders and financial institutions gauge market sentiment and predict currency movements in real time. Using Natural Language Processing (NLP) and machine learning, AI systems analyze tweets, news articles, and online discussions to detect trends, sentiment shifts, and potential market-moving events. Sentiment analysis categorizes social media content as positive, negative, or neutral, helping traders assess investor mood and anticipate volatility. AI also uses topic modeling to identify trending discussions related to economic policies, geopolitical events, or financial crises that could influence currency prices. Deep learning models, such as transformers (BERT, GPT), can process vast amounts of unstructured text data, extracting meaningful insights from posts by influential figures like central bank officials or financial analysts. Despite challenges like misinformation and noise, AI-driven analysis enhances Forex trading strategies by providing real-time alerts on sudden market shifts triggered by social media activity.