US Forex Trading on Good Friday 2025: Market Reactions

Good Friday is an important holiday that affects Forex trading by reducing liquidity and potentially increasing volatility. Good Friday trading volume typically drops 40-60%, creating unique Forex volatility patterns. With major financial hubs closed or operating infrequently, activity slows, spreads widen, and price movements become unpredictable. Traders must adapt—while some currency pairs may see volatility, others could stagnate. This guide covers how US Forex trading on Good Friday 2025.

• The impact of Good Friday on Forex markets
• Trader reactions and key currency pairs
• Historical Forex Good Friday trends (including US market data)
• Whether the US Forex market is open in 2025
• Strategic adjustments for Forex market holiday impact

Quick insights

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Is the US Forex market open on Good Friday 2025?

Yes, the Forex market will be 24/5 open on Good Friday 2025, 18 April. Reduced liquidity and less participation from large financial institutions might also affect trade.

• Good Friday is not a federal holiday in the United States. It is a public holiday in 11 states: Texas, Connecticut, Kentucky, North Carolina, Delaware, Louisiana, North Dakota, Tennessee, Florida, New Jersey, Indiana, and Hawaii.
• Businesses and institutions in affected states could be open as usual, while others might close or operate under limited hours.
• For the US traders, the essential sessions are the London session 3:00 am to 11:00 am EST, and the New York session 8:00 am to 5:00 pm EST.

Read also: Forex market hours explained – when to trade for maximum profit

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Market reactions: How Good Friday impacts Forex trading?

• Forex trading is greatly affected by Good Friday because there is low liquidity and less market participation. The US Forex market closure triggers wider spreads (2-3x normal) in EUR/USD during New York sessions.
• Forex markets will be open but trading volumes fall: Most major financial centers US, UK, Canada, Australia, and most of Europe will be on holiday.
• This thickness on liquidity brings confused price swings, especially on Friday evening (EST).
• 30% of trading volume on London trading takes place when either the UK or EU market is closed until the New York session post-12 PM EST as US stock markets and most banks close for the day New York session is virtually inactive.
• The Asian session usually continues during normal business hours Japan and China are open global participation remains at a minimum, which also means muted price action.
• Traders face specific challenges in this environment. Get ready for wider spreads as liquidity providers pull back, driving up execution costs.
• Price slippage can be extreme, especially in large trades, and scalping and short-term strategies may be more dangerous in unpredictable swings.
• Most professional traders who do not trade on Good Friday are extremely cautious in waiting for normal liquidity conditions after the holiday weekend.

Wondering how holidays affect the Forex market? Then check: Is the Forex market open on Presidents Day?

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Trading strategies for Good Friday 2025: What traders need to know

• Like other holidays, Forex trading on Good Friday 2025 will see low liquidity and possible volatility due to major financial centers closing or being open at reduced hours/days.
• As a result of fewer institutional traders being involved, that can cause spreads to widen and make price movements less predictable, with opportunities to trade being available less and less. Therefore, traders have to change their trading strategies to deal with these situations.
• Key takeaways get through Good Friday’s affair, aim for smaller trade sizes, trade only the most liquid of the currency pairs, EUR/USD, GBP/USD, and avoid most risk-taking trades.
• As such, some Forex traders will simply sit on the sidelines lessening their risk exposure while others will hunt for short-term plays in active Forex sessions.
• To trade wisely, you have to consider historical trends and commodities and be flexible in your approach. For deeper strategy insights, read: Trading Strategies in Forex.

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Historical trends: US Forex performance on previous Good Fridays

• Over the last decade, Good Friday trading volume dropped 35-50% as the US Forex market closure reduced institutional participation. This Forex volatility vacuum often leads to tighter EUR/USD ranges <0.7% moves in 70% of years, except during shocks like the 2023 SVB collapse and 1.2% swings.
• This decrease in interbank Forex activity leads to tighter ranges for pairs such as EUR/USD and GBP/USD unless major geopolitical developments disrupt market stability. USD/JPY has shown mixed behavior, with isolated volatility spikes.
• Recent data supports this pattern: EUR/USD volatility was 0.5% in 2024 amid Fed pause speculation, 1.2% in 2023 after the SVB collapse, and 0.3% in 2022 during Russia-Ukraine ceasefire talks.
• Particularly, in 70% of Good Fridays during the last decade, major currency pairings have moved less than 0.7%, supporting the trend for moderate market movements unless external shocks shift the situation. 2025 Good Friday Forex hours may repeat the <0.7% moves seen in 70% of past years.

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Conclusion

Good Friday 2025 will be a difficult trading day due to considerably reduced liquidity and market participation. With major financial markets either closed or operating at reduced capacity, Forex traders may expect larger spreads, more volatile price movements, and increased slippage risk. Historical trends indicate that most major currency pairings will stay range-bound, with volatility only increasing in response to unanticipated geopolitical or economic events.

Traders must modify their strategies reducing trade sizes, focusing on liquid pairs, and utilizing limit orders can all assist in reducing risk. Some may choose not to trade at all, while others may look for short-term chances during active sessions.

Understanding historical market behaviors and remaining flexible will be critical to making educated decisions. As always, appropriate risk management is critical for managing Good Friday’s peculiar market conditions. With Easter Monday looming, prepare for potential gap openings. For more on trading psychology during volatile periods, check out: Trading psychology and key strategies to stay ahead.