Christmas is coming and during the season of parties and celebrations, traditionally, many Forex traders slow down and focus on other things. If you are keen, however, and are still wanting to trade, it is certainly possible to get some pips during this quiet time, just bear in mind the volatility of the trading market.

Common pairs

For the common pairs EUR/USD, USD/JPY. GBP/USD, USD/CAD, often there is a fall in pip movement in the few days towards Christmas, as well as the week following. It’s no guarantee, but this lack of market volatility means that your profit expectations would be lower and there will be an adjustment in your stop loss. You may find that in the summer, common pairs may yield 150 pips, but over Christmas this would be more like 100 pips. The changes in interest rate affect this.

Resistance and Support Levels

Over the holiday season, support and resistance levels are often much lower than they are the rest of the year. They can be as much as 25% lower. Forex specialists ConnectFX ( assert you don’t need a huge capital investment to start making money with Forex trading. Following the trends carefully means that you can come in at a good entrance level for buying. Knowing that the levels are affected by seasonal change, and lack of Forex brokers trading, can sometimes be an indicator that the levels are going to move back up again once the Christmas week is over.

Keep an eye on the banks

As with many other industries such as the property market, banks tend to slow down over the Christmas period. They are always the biggest Forex traders and tend to trade every day to make sure that they meet the demand of their clients and customers. Bank staff will often take time off over the Christmas season so the Forex trading market naturally slows down. If there is a flat and stagnant Forex market, it may be a good time to take a few days off too and pick up again in the new year, when the market thrives.

When you are trading Forex over the Christmas holiday season, make sure you use good risk management and keep track of the investments that you are making. Even though the market traditionally slows down, we can never predict which pairs are going to rise and fall, depending on the financial situation in each country.