Forex markets close on major holidays, and liquidity drops significantly around these periods. Knowing the trading calendar helps avoid poor execution and unexpected gaps.

US holidays like New Year's Day, Independence Day, and Christmas have the largest impact since the USD is involved in roughly 88% of all forex transactions.

The period between Christmas and New Year's typically sees extremely low liquidity and erratic price movements. Many professional traders avoid trading during this window.

Bank holidays in different countries affect specific currency pairs. UK bank holidays reduce GBP liquidity, while Japanese holidays impact JPY pairs.

Planning your trading around the calendar ensures you avoid periods of thin liquidity where spreads widen and slippage increases. Mark these dates on your trading plan.