Forex (FX) trading is decentralized, which means there is no single exchange governing transactions. Instead, currency trades occur primarily in the Interbank Market, where major banks and large financial institutions buy and sell currency in large volumes.

For smaller participants, forex brokers serve as the gateway, providing trading platforms that connect individuals and smaller institutions to the broader market. These brokers often hedge their exposure by entering offsetting trades in the Interbank Market.

The global nature of forex creates a “24/5” trading cycle: while one financial center closes, another opens. Sydney kicks off the trading week on Monday morning (local time), followed by Tokyo, London, and finally New York, with markets closing late on Friday.

Although the term suggests continuous trading, each center still follows regular daytime hours, with brief periods of overlap during which most trading occurs.

Currency holidays (or bank holidays) are days when a central bank halts normal operations. Because the underlying payment systems (like FedWire in the U.S.) are also shut down, trading in that currency effectively pauses. For example, if the Federal Reserve is closed, settlements in U.S. dollars cannot be processed.

Consequently, liquidity dries up for currency pairs involving USD, spreads often widen, and most brokers will not offer trading of those pairs because they cannot hedge their exposure.

Forex trading is most active during the overlapping working hours of major financial centers. These periods see increased trading activity and higher volumes, which lead to tighter spreads and reduced volatility in both the Interbank Market and retail trading platforms. Because traders are aware of these favorable conditions, many specifically target these windows, further reinforcing the trend.

For most currency pairs, the optimal time to trade is during the overlap between New York and London markets. This occurs in the early afternoon London time, as U.S. markets begin to open, and continues until London markets close, just before lunchtime in New York.

Currency holidays impact more than just the Forex market. When a central bank closes, it becomes difficult to move large sums of money, making equity settlement impossible.

Because currency holidays do not always align with trading holidays, days like Veterans Day and Columbus Day may see trading on the NYSE but no settlement. Conversely, on occasions such as Good Friday or the 2025 National Day of Mourning for Jimmy Carter, trading may be halted while settlement continues for prior trades.

Currency holiday information is critical for knowing when currency pairs can be traded, forecasting settlement dates, and planning interest payment schedules.

TradingHours.com offers comprehensive data for all major currencies, with detailed historical records for backtesting and forward-looking data for long-term planning. The data is accessible via API, making it simple to integrate into your existing systems. Accuracy and reliability are our highest priorities.

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