According to Fundamentalist, world
occurrences dictate the values of currencies. Entangled and
struggling between the optimistic and pessimistic forthcoming while
dictating its imminent effect, as so they say. Absurd maybe, but
occurrences is not only limited to the scheduled and unscheduled
political and economical activities. It also includes the usual
activities like holidays.
How does it affect Forex?
Tackling its significance in the market
gives a better understanding on the market behavior. Basically,
holidays will cause a slowdown in the economy because almost everyone
is not working. Even most traders would most probably want to spend
their time and hard earned money with their family. As a result, it
decreases the trading activity in the market thus limiting the market
volatility in the process.
But there are still those who are
willing to work despite the free day. Some traders still engage in
trading in this times but it's dangerous and often end up on the
losing side. Almost all trades are only carried out using the majors
and using exotic ones could be suicidal especially if the weekend is
already at hand. Also, most trades are conducted in really high
volumes because the movement is limited.
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