My question is relatively simple… on friday the GPBUSD pair closed on a slight upswing at about 1.7665. It opened today at over 1.7875. Thats a 200pip diff! how can that happen if all the markets were closed over the weekend? am i missing something? also, is it safe to assume that the pair will go back down to its normal rate?
Because the market isnt open doesnt mean the price wont move. You cant trade because what bank is going to back that order for you. Just because the post office doesnt deliver mail on sunday it still is moving mail. ITS NOT SAFE TO ASSUME it wil bounce back.
that plus confidence and stability of currency. The take over of Freddie Mac I am sure decreased confidence in the USD. Also its vacation season in Europe which people exchange currency everyday to purchase things. Its not supply and demand as more of strength and rates.