USD pairs face thin liquidity as US markets close for Juneteenth

Trading conditions for USD pairs are expected to remain subdued throughout Wednesday as US financial markets observe the Juneteenth federal holiday. With the NYSE, Nasdaq, and bond markets closed, liquidity in major pairs like EUR/USD, GBP/USD, and USD/JPY will be significantly reduced during North American trading hours. The absence of US institutional traders typically results in wider spreads and potential for erratic price movements on lower volumes. European and Asian sessions may see normal activity, but momentum often fades as the day progresses without US participation. Traders should exercise caution with position sizing and be aware of potential slippage in thin market conditions. Technical levels may be less reliable, and any significant price moves could reverse quickly when US markets reopen Thursday. The holiday also means no US economic data releases, leaving markets to focus on external factors and positioning ahead of regular trading resumption.