Monitor NZ Bank Holiday impact on Forex volatility due to reduced liquidity.
Banks in New Zealand will be closed to commemorate Christmas Day. Since banks handle most forex trading volume, their closure results in reduced market liquidity, allowing speculators to have a greater impact on prices. This situation can cause unusual spikes in both low and high volatility. Most Forex brokers typically operate during all holidays except for Christmas and New Year's Day, as stock markets and banks have slightly varying holiday schedules.
What it Measures
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Usual Effect
Reduced liquidity and inconsistent volatility.
Source & Frequency
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How Data is Derived
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Also Known As
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