Monitor UK Bank Holiday impacts on Forex liquidity and volatility due to closed banks.
UK banks will close in recognition of Christmas Day. Banks account for the majority of foreign exchange activity. When they shut down, market liquidity decreases, allowing speculators to have a larger influence. This situation can result in both unusually low and high volatility. Most Forex brokers remain operational on holidays, with the exception of Christmas and New Year's Day, while stock markets and banks follow slightly different holiday schedules.
What it Measures
N/A
Usual Effect
Reduced liquidity and unpredictable volatility.
Source & Frequency
N/A
How Data is Derived
N/A
Also Known As
N/A
Acronym
N/A