Forex Market Holidays: How Trading Schedules Affect Currency Movements
Alexandra Winters
Beatrice Quinn
The Forex market operates 24 hours a day, five days a week, spanning global time zones. This continuous cycle makes forex highly liquid and accessible, but not all weekdays behave the same. When major economies observe public holidays, key trading centers close or run on limited hours. These forex market holidays (also called forex trading holidays) cause trading volume to drop. As one guide notes, holiday periods typically produce “lower liquidity and higher volatility”. Currency pairs may swing unpredictably and spreads widen when banks and exchanges are shut. In practice, traders often check if today is a forex market holiday before placing orders, since holiday schedules can mute liquidity or trigger volatile gaps in prices.
What Are Forex Market Holidays?
Forex market holidays are days when one or more major currency markets close or reduce hours due to a public holiday. In effect, the usual 24/5 forex clock pauses in certain regions. For example, on Good Friday (April 18, 2025) the U.S. and many European exchanges will be closed. On that day, forex trading “slows down or even stops” for currencies like the USD, EUR, and GBP. Similarly, Christmas Day (December 25) and New Year’s Day (January 1) are observed worldwide, so almost all major currency markets are shut. If China observes Lunar New Year (e.g. Jan 29–31, 2025), the onshore CNY market will be closed, affecting Asian session pairs. In short, a forex holiday means fewer active participants in the market, as local banks and traders in the affected region are offline.
Forex Market Holidays List
| Date | Holiday/Event | Major Markets Closed |
|---|---|---|
| Jan 1, 2025 | New Year’s Day | Global (USD, EUR, GBP, etc.) |
| Apr 18, 2025 | Good Friday | US & Europe (USD, EUR, GBP, CHF, etc.) |
| Dec 25, 2025 | Christmas Day | Global (major markets closed) |
| Dec 26, 2025 | Boxing Day (UK) | UK/Asia (GBP, AUD, NZD) |
| Jan 29–31, 2025 | Chinese New Year | China (onshore CNY market closed) |
Many more dates apply (for example, US Labor Day, UK Bank Holidays, Japan’s Golden Week, etc.). Each holiday affects the currencies of that region. For traders, knowing these dates is crucial. Consult a reliable forex holiday calendar (like broker calendars or economic calendars) to see if today is a forex market holiday in any key currency.
How Holidays Affect Currency Movements
On holidays the forex market tends to behave differently. Major effects include:
- Lower Liquidity: With many banks and institutions closed, trading volume plunges. Fewer participants make it harder to execute large orders, and price discovery becomes less efficient.
- Wider Spreads: Liquidity providers widen the bid-ask spread when risk is higher. In practice, trading costs rise on holidays because the market makers compensate for thin conditions.
- Higher Volatility: Smaller flows mean even modest trades can move prices significantly. The result is sharper, more erratic swings. As one analysis notes, reduced trading volume “can result in wider spreads and an overall increase in market volatility”.
- Price Gaps: If news breaks while markets are closed, gaps can form. For example, holding an open position through a holiday means risking a jump in price when the market reopens. Traders often warn that surprises over a holiday weekend can cause big gaps the following session.
Indeed, real-world examples confirm this pattern. Reuters reported that during the U.S. and Japan Thanksgiving holiday (Nov 2023), “liquidity was thinner than usual” and currency trading was notably quiet. Likewise, data show trading volumes “tend to decline” sharply on Christmas Day. In effect, holiday trading is a double-edged sword: with low liquidity there is both less smoothing of moves and often more risk of sudden swings. Some strategists remind traders to keep perspective: as SMBC’s Jeff Ng explains, even amid holiday thinness the market often refocuses on fundamentals (“inflation expectations stay sticky” in early 2024). And Citi’s Daniel Tobon cautions against overreacting to every wobble, noting “no real risk to the USD’s reserve currency status” despite short-term swings. Such expert views underline that while holidays intensify noise, they do not alter underlying trends in currency markets.
Strategies for Trading During Forex Market Holidays
Holidays demand extra caution and planning. Many forex educators advise:
- Use a Holiday Calendar: Mark major market holidays in your trading calendar. Knowing in advance if today is a forex trading holiday helps avoid surprise closures.
- Limit Exposure: Traders often reduce position sizes or avoid new trades before and after holidays. Tighter risk controls (stop losses, smaller lot sizes) are recommended when liquidity is low.
- Watch the Spread: Expect spreads to widen. Some traders choose to wait until liquidity returns to normal, as NordFX and others emphasize stricter risk management during these periods.
- Diversify and Hedge: If possible, trade currency pairs whose home markets are open. For example, if USD trading is thin (US holiday), one might focus on EUR/GBP instead. Spreading risk across multiple assets can mitigate the impact of any single holiday.
- Be Patient: Many seasoned traders simply sit on the sidelines. Once the holiday ends, pent-up trading activity often resumes with vigor. Planning to re-enter after a break can be wiser than probing the market in the quiet period.
In short, treat holiday trading like any low-liquidity environment: plan in advance, manage risk carefully, and stay informed. Resources like broker economic calendars and holiday notices can be invaluable tools for this preparation.
Conclusion
Conclusively, forex market holidays significantly change the trading landscape. By definition, they reduce the number of active participants, which in turn inflates volatility and widens spreads. Traders who understand this can adapt — for instance, by avoiding forced trades on those days or by capitalizing on post-holiday rebounds. Thorough planning and risk management remain key. Armed with that preparation, a trader can navigate holiday schedules safely and even uncover unique trading opportunities when markets reopen with fresh momentum.
FAQ
What is considered a Forex market holiday?
A forex market holiday refers to any public holiday when one or more major financial centers (such as the U.S., Europe, or Asia) are closed. On these days, trading hours are reduced or paused for the affected currencies. For example, Christmas Day and New Year’s Day are observed globally, so most currency markets shut down on those dates. Other examples include Good Friday in the West or Chinese New Year in Asia. On a forex holiday, only markets of countries not observing the holiday remain open, and overall trading volume drops significantly.
How do Forex holidays affect currency pairs?
On holidays the currency market generally thins out. Lower liquidity often means bids and offers are sparse, which can cause wider spreads and larger price swings. Some traders report more erratic or “choppy” behavior during holiday sessions. In practice, currency moves may become more unpredictable or volatile before and after a holiday as traders adjust positions. It is common to see muted movement on the holiday itself, followed by a rebound or catch-up move once normal trading resumes.
Can I trade Forex when a market holiday occurs?
Yes, it is possible to trade forex on holiday dates, but conditions change. If your broker’s platform is open (many remain active except weekends), you may see very low liquidity for pairs tied to the holiday country. This means trades might fill slowly or incur high spreads. Traders often advise extra caution: using smaller position sizes or tighter risk controls, or avoiding new trades altogether during a holiday. In short, while trading is not forbidden, the risks are higher and opportunities are often limited on holiday dates.
How can I find out if today is a Forex holiday?
Most forex brokers and economic calendar websites list global trading holidays. To check if today is a forex market holiday, use an up-to-date forex holiday calendar. Websites like NordFX, Dukascopy, or broker platforms provide calendars showing which exchanges are closed on any given date. By consulting these resources before trading, you can see in advance if any major currency (USD, EUR, etc.) has a market holiday today and plan accordingly.
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