When is the spring bank holiday 2025? On May 26, 2025, the UK will observe the spring bank holiday, leading to closures in major financial institutions. Forex traders should anticipate reduced liquidity and potential volatility in currency pairs such as GBP/USD.
If you plan to trade around this time, it is essential to understand what is open, which brokers are operating, and how market behavior may shift. Let us break it down so you can make informed trading decisions this bank holiday.
Is the UK Forex market open on spring bank holiday 2025?
- On May 26, the UK Forex market spring bank holiday 2025, the London Forex market, the largest FX trading hub in the world, will be closed for the spring bank holiday.
- Global FX markets in Sydney, Tokyo, and New York will continue to operate, but overall liquidity might decline.
- International brokers may still offer over-the-counter OTC currency trading.
- Most UK-based brokers, including IG and CMC Markets, are expected to halt trading on GBP currency pairings.
Read also: UK Forex market hours on early May 2025 (What’s open and closed)
Trading hours and broker operations on May 26, 2025
What are the forex market hours on spring bank holiday 2025 in the UK? On Monday, May 26, 2025, the UK marks the spring bank holiday, although FX trade goes on worldwide. However, broker activities and liquidity may be restricted in the UK. Here is what you need to know.
Forex trading sessions
- London session: Closed regular hours: 8:00 am to 5:00 pm GMT.
Expect reduced liquidity and limited GBP price action during this period. - Tokyo session: Open as usual, 12:00 am to 9:00 am GMT.
- New York session: Open as usual, 1:00 pm to 10:00 pm GMT.
UK market access summary
- Are UK forex trading platforms offline on the spring bank holiday? UK equity markets and index futures: Closed for the spring bank holiday. However, out-of-hours pricing will still be available on the FTSE 100.
- UK commodities: Most UK commodity markets will be closed. Exceptions include Brent crude, heating Oil, and London gas oil; these will operate on a shortened schedule, closing early at 6:30 pm GMT.
- UK interest rates & bonds: All UK interest rate products and government bond markets will be closed for the day.
Impact on GBP/USD and other major currency pairs
- Is the GBP/USD pair affected by spring bank holiday 2025? GBP/USD may see higher volatility due to reduced liquidity. EUR/GBP could experience unusual price swings with London traders absent.
- Safe-haven currencies USD, JPY, and CHF may attract more activity.
- Historical trends: GBP pairs often consolidate or react to global news during UK holidays.
- Trading strategy advice: Steer clear of high-leverage GBP pair trades over the holiday.
- To guard against unexpected spread widening, use limit orders.
- Monitor U.S. economic announcements, which could cause the GBP/USD exchange rate to react more strongly due to the lack of UK market balance.
Read More: 5 Best risk management strategies in Forex trading
Tips for Forex traders during UK bank holidays
Trading during UK bank holidays like the spring bank holiday, May 26, 2025, requires extra caution. With reduced institutional participation and thinner liquidity, market conditions can become unpredictable, leading to erratic price swings and wider spreads.
Avoid GBP pairs: trade these alternatives instead
GBP/USD, EUR/GBP, and GBP/JPY often suffer from extreme volatility due to London’s closure. Focus on USD/JPY, EUR/USD, or AUD/USD, which remain liquid via New York and Tokyo sessions.
Expect wider spreads & lower liquidity
Will liquidity be low in the UK forex market on spring bank holiday 2025? Spreads can expand 2-3 times on GBP pairs due to fewer market makers. Slippage risk increases when using limit orders instead of market orders.
Adjust your risk management
Consider trading at 50% of your usual lot size. Tighter stop-losses prevent unexpected losses from sudden spikes.
Watch for false breakouts & fake outs
Low liquidity leads to more manipulation. Wait for confirmed breakouts, e.g., retest or volume spikes, before entering.
Trade during active global sessions
Tokyo session 12 am to 9 am GMT: Best for JPY pairs. New York session, 1 pm to 10 pm GMT: More stable liquidity.
Check your broker’s holiday schedule
Will MetaTrader 4 MT4 work on spring bank holiday in the UK? Some UK brokers, e.g., IG, CMC Markets, may restrict trading on GBP pairs. MetaTrader MT4/MT5 remains open, but execution speeds may slow.
Avoid overtrading, patience wins
Thin markets return discipline. Stick to high-probability setups. If the market feels erratic, wait for normal hours to return.
Monitor economic events outside the UK
US data e.g., GDP, Fed speeches, can trigger volatility even with London closed. Euro zone news may impact EUR/USD and EUR/GBP.
Conclusion
The spring bank holiday on May 26, 2025, presents unique challenges and opportunities for Forex traders in the UK. While the market remains open, reduced liquidity and potential volatility require careful planning and strategy adjustments.
Pro Tip
Discover effective Forex trading strategies in collaboration with the best Forex broker. Stay updated on Stocks, CFDs, Banking, Forex, trading, Investments, and Cryptocurrencies. Unlock your trading potential with our broker finder tool, designed to connect you with the ideal partner for your trading journey.
Frequently asked questions FAQs
1. Is the UK Forex market closed on spring bank holiday 2025?
Yes, the London Forex markets will be closed on May 26, 2025. Most UK brokers stop operations, although global sessions like New York and Tokyo remain open.
2. What is the trading schedule for the spring bank holiday 2025 in the UK?
While UK-based brokers may close, trading continues globally. The London session is closed, but you can still access the Tokyo and New York Forex trading hours.
3. Are Forex brokers operating on the spring bank holiday 2025 in London?
Many UK Forex brokers, such as IG and CMC Markets, may suspend GBP pair trading, though MetaTrader 4 MT4 remains technically accessible.
4. What time does the Forex market close on the spring bank holiday UK?
The London Forex session, usually from 8:00 am to 5:00 pm GMT, will be closed. However, the Forex market itself does not close globally.
5. Are London Forex markets open on May 26, 2025?
No, they are closed for the spring bank holiday 2025 UK.
