I know the stock market is closed, i tried to search online, but did not find anything stating that the forex market will be closed.
Does anyone know if the markets (Asian, UK, US) will be open tomorrow?
Status NOW
Forex Session Open Time
Frankfurt, Germany 7:00a GMT 3:00p GMT Closed
London, Great Britain 8:00a GMT 4:00p GMT Closed
New York, USA 1:00p GMT 9:00p GMT Open
Sydney, Australia 9:00p GMT 5:00a GMT Closed
Tokyo, Japan 11:00p GMT 7:00a GMT Closed
Yes, the interbank network and all retail forex brokers will be operating tomorrow, Good Friday.
However, [B]commercial and retail banking[/B] will be closed in Germany, France, Italy, Great Britain, Switzerland and Canada.
Ordinarily, such a major bank holiday would produce extremely low forex [B]volume[/B], and potentially erratic forex [B]price-volatility.[/B]
But, tomorrow will be a little different from the usual Good Friday, because of the [B]NFP release[/B]. Many traders who would normally be away from the market on Good Friday, will likely be watching the NFP release at 8:30am New York time.
If tomorrow’s NFP contains [B]any[/B] surprises, those passive traders could pile into the market, and the resulting [B]price-volatility[/B] post-release could be nutty, even though total [B]volume[/B] at this time will still be below a normal NFP-Friday.
No matter what happens around NFP-release time, I expect forex volume around the world to be quite low after mid-morning.
Unless you are a pro trader, stay out of the market prior to, and during, the NFP release. If you decide to enter the market 15 minutes, or so, after the NFP release, understand that trading the reaction to NFP always carries added risk.
On a bank holiday, the risk is likely to be even greater.
Thanks for your replies.
Correct me if i’m wrong, but on sunday (4/4) - monday (4/5) EST, the asian & US markets will be open, however the UK will be closed.
Also, I might be completely wrong here, but i’ve noticed that the USD/CHF is very sensitive to moves in the USD; more so than the other major pairs.
I’m a noobie so if i’m totally off, i apologize. My point is, if this is true the USD/CHF is probably the best pair to trade if you want to play the NFP tomorrow, right?
Commercial and retail banking here in Australia will be closed.
Just about everything shuts up on Good Friday here, similar to Christmas Day.
When does the interbank network and retail brokers close if ever or does the liquidity almost reach zero (just a little life in the market)?
Hi, Tom
I didn’t mean to slight you guys in Australia and New Zealand.
Indeed, you will be observing Good Friday along with (most of) the rest of the Christian world.
Your question is actually 3 questions:
B When (if ever) does the interbank network close? [/B]
The interbank network is not a place. It is the electronic market linking about 100 very large banks, plus about 900 smaller banks, via trading platforms and ordinary telephones.
The big banks have trading desks in various locations around the world, and they hand their book from one trading desk to the next, essentially following the sun around the globe.
Kathy Lien explains the typical overnight routine — on normal weekdays — this way:
On a foreign exchange spot trading desk, there are generally one or two market makers responsible for each currency pair. That is, for the EUR/USD, there is only one primary dealer that will give quotes on the currency. He or she may have a secondary dealer that gives quotes on a smaller transaction size. This setup is mostly true for the four majors where the dealers see a lot of activity. For the commodity currencies, there may be one dealer responsible for all three commodity currencies or, depending upon how much volume the bank sees, there may be two dealers.
This is important because the bank wants to make sure that each dealer knows its currency well and understands the behavior of the other players in the market. Usually, the Australian dollar dealer is also responsible for the New Zealand dollar and there is often a separate dealer making quotes for the Canadian dollar. There usually isn’t a “crosses” dealer - the primary dealer responsible for the more liquid currency will make the quote. For example, the Japanese yen trader will make quotes on all yen crosses. Finally, there is one additional dealer that is responsible for the exotic currencies such as the Mexican peso and the South African rand. [B]This setup is mimicked usually across three trading centers - London, New York and Tokyo. Each center passes the client orders and positions to another trading center at the end of the day to ensure that client orders are watched 24 hours a day. [/B]
For the rest of Kathy’s article, see — The Foreign Exchange Interbank Market
As for weekends and holidays, retail brokers may be closed; but, essentially, the interbank network never closes.
Consider this scenario: Suppose a major disaster were to strike a large city, somewhere in the world, at 9pm (local time) on a Saturday night. Immediately, massive amounts of money would begin flowing around the world, via the interbank network.
The major players would [B]not[/B] be waiting until Monday morning (New Zealand time) for the forex market to open for the week.
B When do retail forex brokers close?[/B]
Retail forex brokers set their own times to open and close each week, and they determine their own holiday schedules.
Certain patterns and norms have developed regarding major holidays, but the various brokers do not operate in lock-step.
They do, however, keep an eye on their competitors’ schedules, so as not to place themselves at a competitive disadvantage.
You should always check with your own broker for holiday closing times.
B Does liquidity just dry up?[/B]
Barring a disaster such as the scenario described above, liquidity certainly approaches zero on the weekends and on certain holidays, when major corporations, hedge funds, commercial banks, institutional brokers and retail brokers, are all closed for business.
Whether brokers (both institutional and retail) are closed at those times because market liquidity has dried up, or vice versa,
is probably a “chicken-and-egg” question.
Clint,
Thats ok, I knew you weren’t slighting us.
Great answer, re the hours of operation for the interbank network, very useful thanks.