Hopping with the Easter bunny
Skerdian Meta • 2 min read
Happy Easter to those celebrating! Most of the western world shuts down shop from Thursday afternoon until Tuesday morning, but forex brokers remain open even throughout bank holiday weekends. Friday and Monday are not federal holidays in the US, but most of the financial institutions and the exchange floors are closed. When the US and Europe are closed, especially London which accounts for about 45% of the total foreign exchange volume, liquidity is very low.
The thin markets are very sensitive and a single piece of data might send the price of hundreds of pips helter skelter, so you can get caught on the wrong side very easily. Traders had a taste of that on Friday when the US data was published. The month-to-month US non-farm employment change was about half of what was expected, but that indicator is very volatile at the best of times and it was not such a big surprise, after taking into account the severe winter in the northeast.
A surprise pick-up in the hourly earnings was the main indicator that the FED was looking at for the rate hike decision. Yet, the US Dollar declined more than 150 pips against all the majors without any significant retrace. The activity this morning looks limited; if we are to open any trades, we´ll be very careful and keep them small. We opened EUR/USD sell signals about an hour ago at the 1.10 round number which is a psychological level as well.