Hopping with the Easter bunny - Forex News by FX Leaders

Hopping with the Easter bunny

Posted Monday, April 6, 2015 by
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. 

In such conditions, it is difficult to trade because the market behaves unreasonably.
The moves are like watching paint dry. 

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. FED member will be on at 12:30 GMT, and about an hour later we have the US non-manufacturing PMI which might trigger moves similar to those we saw on Friday. We are planning to place a buy and a sell pending order on EUR/USD 20 pips away from the price, so if such a move does happen then we can ride it.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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