State holidays and Forex

InstaForex Company offers you to look through the information regarding the influence of holidays on financial flows on the leading financial markets and particularly on Forex market. Most financial grounds of the world are open 5 days a week. Only Forex can brag about its operations with no breaks. However, on Saturday and Sunday Forex trades on are conducted only with the major currency pairs and the coverage is less global than during working days. But, during calm holiday period on FX 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 in market capital.

Such a drop in business activity is triggered by holidays, which the major market participants – commercial and investment banks – have. Especially the banks, which provide a huge part of Forex and other markets’ financial flows saturation.

Forex disregards some holidays, however even the "currency giant" can be dependent on some of them. There is no use explaining why Forex market and its participants are real "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. Thus, as long as a computer with the Internet connection is switched on - Forex is functioning. Nevertheless, let us get back to State holidays. Not all holidays are significant enough to turn a usual working day into a holiday for numerous countries. It can be New Year’s Day, Christmas and Labor Day (every country has its own name for this holiday). The world does not stop for the holiday, though; neither do the financial flows and informational issues. All of this is very important for a trader, especially for the one who stakes on fundamental analysis. The markets still for holidays, but this looks more like the hush before the storm. Just bring to your mind, how often during holidays one or another micro- or macroeconomic event takes place. Politicians announce about a resignation or assignment, heads of companies publish reports, declare about mergers, a crisis starts in one of the Middle East countries, the President of a transnational company cancels the celebration… All of these facts are of great significance and every market being dependent on such news will react right after opening. However, Forex market will be the first to show the effect.