Forex Market: Low Volume on Independence Day
The low volume of the dollar and its transactions in the Forex market is a constant before the holidays.
With 24 hours to go until Independence Day in the United States, major investment firms have time to assimilate the results of a hectic week.
The Forex market also has its days where certain sectors pause, and in this case, the dollar market will close. Since the Independence Day holiday, or 4th of July, will be celebrated on Friday of this year for the US markets
This will allow investors to study their next moves in view of Monday.
With everything that has happened in the United States during this week, it will be good for these entrepreneurs to analyze what will be the smartest move to make.
Low volume of the dollar in the face of the 4th of July
With Wall Street closed for the U.S. holiday, activity is reduced to a low dollar volume this Friday.
Therefore, investors will need to be on the lookout for possible portfolio adjustments that could mean gains or losses for investors.
However, attention is still focused on the U.S. employment figures reported yesterday. These figures once again raise doubts among some experts, as they did in the May report.
The figures updated yesterday by the U.S. Department of Labor were as follows: Non-farm payrolls increased by 4.8 million jobs in June. Payrolls recovered by 2.699 million in May.
The U.S. generated job offers in less than a month, bringing the unemployment rate down to 11.1% from 13.3% last month.
However, the true effect of these figures is expected to be seen on Monday.
This is when investors will reflect on their thinking about trading in the Forex market. For now, the low volume of the dollar is having an effect.
Also, these employment figures are not the only factor that investors are counting on to stop. There are many factors that affect the dollar’s future prospects in the Forex market.
Therefore, there is a lot of uncertainty in the days ahead. The main question is whether the U.S. government will be able to support the reopening of the economy, which only adds to the uncertainty of Monday’s trading.
And with the dollar’s low volume, there is still no accurate analysis of future results.
Will the dollar be able to withstand the economic reopening?
Coronavirus, protests and uncertainty: Is this a good scenario for the dollar?
The stock market has been trying to overcome the many problems that have arisen in an unusually turbulent period in history.
The United States has faced unimaginable scenarios in the first half of 2020. This greatly affected the price of the currency in the Forex market.
And while investors perceived the U.S. currency as a safe haven for their Immediate Edge investments, allowing the dollar to maintain positive gains and statistics in the early months, it remains to be seen what the future holds.
A good example of the positive effects are the figures emanating from two of the most relevant indices in the United States. The Dow Jones and SP 500 have gained almost 40% since the lows at the end of March, when the Coronavirus pandemic broke out.
In addition, this year’s holidays may be of unique importance to markets and to an economy made fragile by the pandemic that has claimed so many lives globally.
However, the George Floyd case promises to affect the foreign exchange market as well. For the promise of increased protests this July 4th, because of this case, only adds to the uncertainty of Monday’s market outlook.