InstaForex Company offers you to look through the information, regarding the influence of holidays at financial flows on the leading financial markets and particularly at the Forex market. Almost all financial grounds of the world operate within 5-workingdays week. Only Forex can brag about its operations with no breaks. However, on Saturday and Sunday the trades on Forex are only with major currency pairs and the cover is less global than during the working days. But, during the holiday calm period on the Forex market the liquidity rate lowers and the intensity of almost all financial flows weakens, which leads to significant reduction of the risks, due to the loss of invested capital to the market.
Such drop in business activity is due to the holidays, which have major participants of the Forex market - commercial and investment banks. Especially banks provide the huge part of Forex financial flows saturation and other markets.
Forex disregard some holidays, however even "currency giant" can be within some of them. There is no doubt that Forex and its participants are such "workaholics". It is clear that this market is international and it accumulates in the Global network and in the accounts of thousands and millions of marketmakers, brokers and traders. It is turn out that as long as computer with internet connection is switched on - Forex works. However return to the State holidays. Not all the state holidays have significance to make usual day holiday, and in most of the countries at that. It can be New Year, Christmas and Labor Day (every country has its own name for this holiday). But world does not stop, and financial flows do not stop as well, informational reasons do not fail too. All of this is very important for trader especially for those who stakes on fundamental analysis. During the holidays period market seem to stop but this is more like calm before the storm. Just remember how often during the holiday one or another micro or macro economical events take place. Politicians announce about the resignation or assignment, heads of companies publish their reports and announce about the merger, another crisis took place in one country of the Middle East, president of transnational company refuses in celebrating holidays... All of this is very important and any market which is dependent on such news will react to this as soon as it opens. The first reaction will be from the Forex market.