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Forex Market: Low Dollar Volume


The low volume of the dollar and its transactions in the Forex market is a constant before the dates of holidays.

At 24h on independence day in the United States, the main investment companies have time to assimilate the results of a busy week.

The Forex market also has its days where certain sectors take breaks, and in this case, the dollar market will close. Since the Independence Day holiday, or July 4, will be celebrated on Friday of this year for the US markets.

This will allow investors to study their next movements for Monday.

Well, with everything that happened in the United States this week, it will be in the best interest of these entrepreneurs to analyze what will be the smartest measure to take.

Low dollar volume ahead of July 4

With Wall Street closed for the US holiday, this Friday activity is reduced to a low volume of the dollar.

Therefore, it will be necessary to be alert to possible portfolio readjustments that could mean profits or losses for investors.

However, the focus is still on the employment figures reported yesterday in the United States. Figures that once again cast doubt among some experts, as happened with the May report.

The figures updated yesterday by the United States Department of Employment were as follows: Non-farm payrolls increased by 4.8 million jobs in June. Payroll recovered at $ 2,699 million in May.

The United States generated job offers in less than a month, lowering the unemployment rate to 11.1%, from 13.3% last month.

However, it is expected that the true effect of these figures can be seen on Monday.

Well, it is when investors reflect their thinking about transactions in the Forex market. Since, at the moment, the low volume of the dollar is influencing.

Furthermore, these employment figures are not the only factor to count for investing. Multiple complicated factors affect future dollar projections in the Forex Market.

Well, there are many doubts in the days ahead. The main question is whether the US government will be able to withstand the economic reopening, only creating more uncertainty for Monday’s market outlook.

And, with the low volume of the dollar, a correct analysis of future results cannot be obtained yet.

Coronavirus, protests and uncertainty: Is it a good scenario for the dollar?

For its part, the stock market has been trying to overcome the numerous problems that have arisen in an unusually turbulent period in history.

The United States 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 US currency as a haven for their investments, allowing the dollar to maintain increases and positive statistics in the first months, it is necessary to see what the future holds.

Despite the low volume of the dollar, the indices of the American currency presented a remarkable performance in the week.
Despite the low volume of the dollar, the indices of the American currency presented a remarkable performance in the week. Source:

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 nearly 40% since the lows in late March, when the Coronavirus pandemic broke out.

Furthermore, this year’s holidays may be of unique importance to markets and to a fragile economy due to the pandemic that has claimed so many lives globally.

However, the George Floyd case promises to affect the currency market as well. Well, the promise of an increase in protests on July 4, in this case, only generates more uncertainty to the outlook for Monday in the market.

Situation of the dollar in the Forex market before July 4

At the time of writing this article, the dollar was trading at 1.1243 against the euro. With a slight increase in the session, compared to the figures prior to the closing on July 4.

Although, there is not much variation in the figures due to the low volume of today’s dollar, as can be seen in the graph below.

Low volume of the dollar in the Forex market by July 4.
Low volume of the dollar in the Forex market by July 4. Source: Yahoo Finance

In summary, we have to wait for the reflected results in the Forex market of the American currency. After all these events, the effects can be seen on Monday, when the investors have analyzed each edge of these events.

In addition, the increase in cases of coronavirus that will be evident on Monday, after the festivities of this weekend in the American country, could generate a possible blow to the currency.

Still, billions of dollars in aid from the Federal Reserve and the United States government have helped encourage buyers of assets deemed risky on Wall Street.

How will the Forex market be affected on Monday?

Reliable sources

The information in this content has been extracted from reliable sources detailed below:

1- Own writing of the content author.
2- External source: Forex Factory.

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