Monitor JN Bank Holiday impacts on Forex volatility due to reduced liquidity and dominant speculators.
Japanese banks will be closed for a 4-day holiday. As banks account for the majority of foreign exchange activity, their closure results in reduced market liquidity, allowing speculators to exert greater influence over the market. This situation may cause unusual fluctuations, both low and high in volatility. Most Forex brokers continue to operate during all holidays except for Christmas and New Year's Day, while stock markets and banks follow slightly different holiday schedules.
What it Measures
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Usual Effect
Reduced liquidity and erratic volatility.
Source & Frequency
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How Data is Derived
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Also Known As
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