#AIImpactOnForex Lexicon-based sentiment analysis in Forex trading relies on predefined dictionaries, or lexicons, containing words and their associated sentiment scores (positive, negative, or neutral). These lexicons are often manually curated or built using statistical methods on large text corpora. When analyzing Forex-related text, each word is looked up in the lexicon, and its sentiment score is retrieved. The overall sentiment of the text is then calculated by aggregating the scores of individual words, often considering factors like word order and the presence of negating words. This approach is straightforward to implement and doesn't require extensive training data. However, its accuracy can be limited by its inability to capture context-dependent sentiment or nuanced expressions common in financial language.