In the context of FX trading on FGX, which aspect is most directly impacted by economic sanctions?

The aspect most directly impacted by economic sanctions in the context of FX trading on FGX is currency volatility. Economic sanctions often lead to significant shifts in how currencies are valued in the foreign exchange market. When sanctions are imposed against a country, its currency may experience increased volatility due to the restrictions on trade and financial transactions. Investors and traders often react to news of sanctions with rapid buying or selling of currencies, leading to fluctuations in exchange rates.

In addition, sanctions can disrupt the normal flow of transactions, altering demand for a nation's currency both domestically and internationally. This can create uncertainty in the market and cause sharp movements in currency prices as traders adjust their positions based on anticipated changes in the economic landscape. Thus, the direct impact of sanctions is primarily seen in how stable or unstable a currency becomes, which makes currency volatility the correct answer in this context.