#AIImpactOnForex Sentiment-Driven AI Models for Currency Price Movements use sentiment analysis—often from news, social media, and financial reports—to predict changes in currency values. These models leverage natural language processing (NLP) to quantify market emotions (e.g., fear, optimism) and integrate them with traditional financial indicators. Machine learning algorithms like LSTM networks, transformers, and ensemble methods are commonly used to capture the complex, often nonlinear relationship between sentiment and currency movements. By recognizing shifts in market sentiment early, these models aim to improve forecasting accuracy over purely technical or fundamental approaches, though they face challenges like data noise, lag effects, and geopolitical unpredictability.