Fourth of July Forex Trading
07/01/2014 9:00 am EST
It’s important to remember that the Fourth of July holiday this Friday is quite unique in that it’s only a public holiday in the US, which is especially important to remember when it comes to the forex market, notes Adam Lemon of DailyForex.com.
Friday, July 4, 2014 is a major public holiday in the USA. Note, however, that it is not a public holiday anywhere else in the world, so the global forex market should be relatively unaffected.
As the USA is one of the major financial centers driving volume in the forex market, we can expect this day to have levels of volatility and price movement somewhat lower than would be usual. Additionally, this holiday falls on a Friday, so it is likely to form part of a “long weekend” and cause the markets to get things wrapped up as much as possible before the day, particularly as the key non-farm payrolls data release in the USA will be held one day earlier than usual, on the day before the holiday.
For these reasons, we do not recommend opening any new trades in USD pairs whatsoever after 1:00 PM Friday London time, until 8:00 AM Tokyo time the following Monday, July 7. It is, of course, acceptable to close trades during this period, as if a stop loss is exceeded during such a relatively slow period, it would be very likely to also be exceeded during an active market. Trades in non-USD pairs can be taken as normal.
Please be aware that most retail forex brokers will allow trading during normal market hours on Monday, July 7. Those based in the USA may only offer somewhat curtailed customer support. If your broker is located in the USA and you can possibly wait or avoid requiring active support from your broker over this period, you should eventually receive a more prompt and convenient service on the following day.
By Adam Lemon, Contributor, DailyForex.com