Thin holiday markets: Thanksgiving and the quiet that bites
Posted: Sat Oct 31, 2026 9:20 pm
When the United States is on holiday, the dollar pairs can trade in odd ways. Volume drops sharply, spreads widen, and moves occur on little news.
On Thanksgiving Day and the day after, liquidity is particularly low. Price may drift in narrow ranges for hours, then jump when a modest order hits the market.
For scalpers, the appeal is that nothing seems to be happening. The danger is that a thin market does not forgive. Stops get slipped, and spreads at rollover are worse than usual.
Other holidays across major countries create similar conditions for their currencies. A UK bank holiday affects sterling pairs, a Japanese holiday affects the yen.
The sensible approach is checking a holiday calendar for each currency traded, and either reducing size or skipping the day. The cost of missing a few quiet days is small.
Also remember that holiday schedules shift the timing of rollovers and futures sessions.
How are market holidays handled in the trading schedule?
On Thanksgiving Day and the day after, liquidity is particularly low. Price may drift in narrow ranges for hours, then jump when a modest order hits the market.
For scalpers, the appeal is that nothing seems to be happening. The danger is that a thin market does not forgive. Stops get slipped, and spreads at rollover are worse than usual.
Other holidays across major countries create similar conditions for their currencies. A UK bank holiday affects sterling pairs, a Japanese holiday affects the yen.
The sensible approach is checking a holiday calendar for each currency traded, and either reducing size or skipping the day. The cost of missing a few quiet days is small.
Also remember that holiday schedules shift the timing of rollovers and futures sessions.
How are market holidays handled in the trading schedule?