Forex Holidays

Learn how regional market holidays can effect the global forex market.

Forex trading is conducted between a network of brokers, dealers, and banks, rather than through a traditional exchange. Each individual company is free to decides its own holiday schedule. For this reason, there are no set "forex holidays."

Breaking Down 'Forex Holidays'

Every forex broken sets their own holidays. Retail exchanges may not close at all even for holidays in their own country. However, volume is still likely to be lower on major holidays. Traditional banks and institutional investors tend to observe holidays more regularly than retail investors. Since banks and institutional investors are the biggest players in the forex market volume will be down.

Why It Matters

Forex trading is strongly effected by volume and liquidity. It can be a big advantage to know when markets have their highest volume and avoid times of low volume. Major holidays in the U.S., Europe, and around the world will have a large impact on trading volume. Currencies in the county with the holiday will be impacted the most. Holidays like Christmas and New Year's tend to effect the entire market around the world.

In earlier February there is National Foundation Day in Japan. This holiday may effect currency pairs like USD/JPX or EUR/JPX. But USD/EUR, for example, is unlikely to be significantly impacted.

Savvy traders know that the best time to trade is often after a holiday. Volume tends to be higher on Mondays. Following a long weekend, volume can be even higher. People want to make up for all the lost time over the weekend.

The Bottom Line

Forex markets are impacted by global holidays. To be successful trading forex, you need to be aware of global financial market. There are a number of market tools available that can help you track trading hours and market holidays. Tools like the economic Activity Calendar can help traders stay on top of the latest news.