Forex Market Holidays 2026

Forex market holidays are specific dates when major financial centers observe public or bank holidays, leading to reduced liquidity, wider spreads, and increased short-term volatility in the forex market. Although forex trading usually remains open, currency pairs linked to holiday countries often experience unstable pricing and lower trading volumes. Understanding forex market holidays helps traders manage risk, avoid unfavorable conditions, and plan trades around periods of limited market participation.

How Trading Holidays Affect the Forex Market

Reduced Liquidity

During forex market holidays, banks, institutional traders, and liquidity providers may be closed or operating with reduced capacity. This leads to lower trading volumes, particularly in currency pairs connected to the holiday region.

Increased Volatility and Wider Spreads

- Low liquidity often results in:

- Wider bid–ask spreads

- Sudden price spikes

- Higher slippage on market orders

- Irregular intraday price behavior

These conditions can make trade execution less predictable.

Impact on Automated and Short-Term Strategies

Scalping systems, high-frequency strategies, and some automated trading algorithms rely on stable liquidity. During holidays, these strategies may underperform or generate unreliable signals.

Why Forex Market Holidays Matter

Monitoring forex market holidays allows traders to:

- Avoid low-liquidity trading sessions

- Adjust leverage and position sizing

- Protect open positions from abnormal volatility

- Prepare for increased activity after holidays

Even if only one major market (such as the US, UK, Eurozone, or China) is closed, global forex trading conditions can change noticeably.

Forex Market Holidays 2026

The table below outlines key forex market holidays in 2026 that may affect liquidity and price behavior in the global forex market.

Forex trading may remain open on these dates, but liquidity and execution quality can be significantly reduced.

Trading Strategies During Forex Holidays

Reduce position size to manage risk

Avoid scalping and very short-term trades

Monitor spreads before entering the market

Use limit orders instead of market orders

Be cautious before and after long holiday weekends

Advanced Holiday Trading Considerations

More experienced traders may:

Trade only highly liquid major currency pairs

Lower leverage during holiday periods

Avoid holding positions over multi-day holidays

Stay out of the market during major US, UK, or China holidays

In many cases, not trading during major forex market holidays is a valid and disciplined decision.

Frequently Asked Questions

What are forex market holidays?

Forex market holidays are days when major financial centers observe public or bank holidays, leading to reduced trading activity and liquidity.

Is the forex market closed during holidays?

The forex market usually remains open, but trading conditions can be unstable due to lower participation.

Do spreads increase during forex market holidays?

Yes. Lower liquidity often results in wider spreads and less favorable execution.

Should beginners trade during holidays?

Beginner traders are generally advised to avoid trading during major forex market holidays due to unpredictable price movements.

Which currencies are most affected?

Currencies linked to the country observing the holiday typically experience the greatest impact.

Key Takeaways

- Forex market holidays reduce liquidity and can increase volatility

- Trading conditions may worsen even if markets remain open

- Planning trades around holiday calendars improves risk management

- Post-holiday sessions often show sharp increases in activity

- Avoiding major holidays can help preserve trading capital

Trade Forex!