Many traders ask: Are forex markets open on bank holidays? The answer is yes — but with important caveats. While the global forex market operates 24 hours a day, five days a week, bank holidays can significantly reduce liquidity and trading volume, which impacts market conditions.

Forex Market Hours: Always Open During Weekdays

The forex market remains technically open from Monday to Friday, regardless of bank holidays in individual countries. It operates through a decentralised global network of banks, brokers, and financial institutions across major financial centres such as:

• Sydney
• Tokyo
• London
• New York

This means that unless it’s a global holiday, the forex market doesn’t officially shut down.

When Bank Holidays Affect Trading

While the market remains open, bank holidays can affect:

1. Liquidity
If a major financial hub is closed — like London or New York — trading volume drops, spreads widen, and price movement becomes limited or erratic.

2. Volatility
With fewer market participants, sudden price spikes or thin trading can occur. For example, trading during US Thanksgiving or UK Bank Holidays is notoriously slow and unpredictable.

3. Economic Data Releases
Key releases such as Non-Farm Payrolls or central bank decisions may be postponed during holidays, reducing the catalysts that drive market movement.

4. Broker Hours And Execution
Some brokers adjust their trading hours or suspend certain instruments on specific bank holidays. This can include early closures or delayed order execution.

Examples Of Bank Holiday Impacts

• Christmas Day (25th December) and New Year’s Day (1st January): Most global trading shuts down or becomes inactive.
• Easter Friday and Monday: Several global markets, including London and Sydney, close.
• US Independence Day (4th July) or UK Spring Bank Holiday: Lower trading activity in major currency pairs like GBP/USD or EUR/USD.

Should You Trade During Bank Holidays?

Pros

• Lower competition
• Occasional sharp breakout moves
• Short-term scalping setups in thin markets

Cons

• Reduced liquidity and volume
• Widened spreads
• Unexpected slippage
• Lack of market-moving news

Conclusion

If you’re wondering are forex markets open on bank holidays? — the answer is technically yes, but trading conditions are far from ideal. Market depth, liquidity, and volatility can be compromised, especially when holidays affect major centres like London or New York. Successful traders often stay on the sidelines or reduce exposure during these periods.

Want to learn when and how to trade during unpredictable market conditions? Join our expert-led Trading Courses at Traders MBA and gain the edge to navigate holidays like a pro.