It is that time of year again! As the Forex market is centered in London and North America, traders should pay attention to their holiday season of Christmas and New Year. This time can be confusing as December holds some great trading opportunities, but you don’t want to be trading in dead markets or markets with very thin volume that are perfect arenas for stop hunters looking to kill your trades. So let’s go through it day by day, showing the typical hours most brokers close early, and a little advice:
Sunday / Monday - 22nd / 23rd December
Typical Opening Time (GMT): Normal
Typical Early Closing Time (GMT): None – public holiday in Japan
Many financial professionals in Europe and North America will already have gone on holiday. It is a public holiday in Japan. The markets are open as usual today, but it is recommended from this point not to initiate any new trades, especially in European currencies, and to reduce exposure on any long-term trades.
Tuesday 24th December – CHRISTMAS EVE
Typical Opening Time (GMT): Normal
Typical Early Closing Time (GMT): 18:00 – public holiday in Germany
Even more professionals will be on holiday from today, especially in Europe. It is a public holiday in Germany. The market is likely to be extremely thin in the morning and to die at lunchtime.
Wednesday 25th December – CHRISTMAS DAY
All financial markets are closed today – public holiday throughout Europe and North America.
Thursday 26th December – BOXING DAY
Typical Opening Time (GMT): 07:00
Typical Early Closing Time (GMT): None – public holiday throughout Europe and Canada
It is a public holiday throughout Europe and Canada. Open markets are likely to be extremely thin.
Friday 27th December
Typical Opening Time (GMT): Normal
Typical Early Closing Time (GMT): None
There are no public holidays and markets are open as usual. In Europe, many financial professionals will still be on holiday. Be very cautious in initiating any new positions and avoid any European instruments.
Sunday / Monday – 29th / 30th December
Typical Opening Time (GMT): Normal
Typical Early Closing Time (GMT): None
The markets should pick up, with many Europeans returning to work. It is possible to enter new trades today and there may well be some directional movement in the markets.
Tuesday 31st December – NEW YEAR’S EVE
Typical Opening Time (GMT): Normal
Typical Early Closing Time (GMT): 18:00 – public holiday in Japan, Germany and New Zealand
Markets in general are likely to be slow and thin. It is probably a good idea not to enter any new trades today. Take care to avoid Japanese and European instruments in any case.
Wednesday 1st January
All financial markets are closed today – global public holiday.
Thursday 2nd January
Typical Opening Time (GMT): 01:00
Typical Early Closing Time (GMT): None
Back to normal! This is the first trading day of 2014 and you don’t want to miss it. The first few days of January often see the start of large directional moves.
So, those are the day-by-day details. Even if you are not in a country that celebrates Christmas, it is probably a good idea to take advantage of it and forget about trading for the entire week and maybe even until 2nd January. You probably won’t miss much, and you’ll be refreshed and ready to take advantage of all the opportunities that 2014 will have to offer!