The Worldwide soccer bonanza that gets fans all in a frenzy every four years is back again with us this year, 2014. And all eyes this time round will be on Brazil.

Brazil will be hosting the 2014 FIFA world cup for the second time. They first hosted the tournament in 1950. It will kick off on 12 June and the final match will be played on 13 July.

While lots of the expected excitement will be focused on the pitch, there will be many other activities surrounding the tournament. Forex traders in particular are not known to sleep or relax too much when such gargantuan events are happening.

There will be plenty of opportunities to make huge profits trading foreign currencies as the tournament kick-off nears, and this bountiful trading season will extend to three months or more after the 1-month tournament is over.

Right now, forex investors all over the world are positioning themselves to take advantage of all the trade that will be happening around the world cup. As expected, experts are already speculating on the best ways to trade and make a killing.

Buy Brazilian Reals

One of the long-term strategies of Forex investors is to purchase Brazilian currency, the Real, now before the tournament kicks off. Actually, long term investors began purchasing the Real as early as a year ago.

On the other hand, some investors were selling off their Reals in the past 6 months as Brazil invested heavily in imports for preparing the country for the month-long event.

The Brazilian government was also in the final stages of preparing their infrastructure in anticipation of the increased visitor numbers.

This required heavy investment amounting to over US$ 11 Billion, making it lucrative to sell off your Reals for major currencies such as the USD and EUR.

Nevertheless, buying now means you will be buying low since a sharp increase is expected once sports tourists start flocking Brazil.

The Real is expected to continue growing in value over the next 4 months and this period may extend even further in case the hosts emerge the winners of the tournament.

Moreover, most tourists arriving in Brazil will stay beyond the one month and this will keep the Brazilian economy and the Real going strong for a while.

Scalpers Heaven

There is so much economic and financial activities expected to happen in the next few weeks leading up to the world cup event.

Global advertisers are making last minute deals for sponsorship while broadcasters are selling off broadcasting rights to the highest bidders.

With such huge sums exchanging hands the value of the Real is showing daily fluctuations that can turn a wise trader into an instant success story.

And, these fluctuations are not affecting just the Brazilian Real but also the currencies of Brazil’s major trading partners.

The US dollar is expected to be on the rise during the whole period of the tournament as travelers will be converging on South America from all over the world.

Making huge trades with short timelines (scalping) can get very lucrative for a trader employing the best and most accurate technical analysis tools.

Sports betting all around the world will result in high currency fluctuations and betting on the winning teams is a good strategy for scalpers.

Movements of the major pairs

While lots of money will be exchanging hands in Brazil and its surrounding neighbors, the biggest bucks will be made in Europe.

Soccer is a favorite sport in the UK and Europe, and historically, there have always been very high currency fluctuations in European currencies during the world cup month regardless of where the tournament is being hosted.

Apart from Europe, some heavy investments are expected in Australia and Asia. When analyzing spot returns in the global Forex market for previous world cups, the highest traded currencies are the GBP, EUR, CHF, AUD, CAD, NZD, and JPY.

Conclusion

If you want to make the most of your Forex trades during the FIFA world cup month, it is best for you to learn all you can about soccer.

Learn as much as you can about the hosts, Brazil. Learn as much as you can about the countries tipped as favorites for winning the trophy.

According to our analysis, these top teams are the hosts, Brazil, Germany, Argentina, and Uruguay.

Learn all you can about the participating countries’ currencies and study how the currencies have traded in the past world cups.

One tip to keep in mind: there always seems to be a correlation between the skill of a team and the strength of its corresponding currency.

Hence, expect the Argentinean Peso to grow in value in case Argentina advance to the world cup finals.