Risk Currencies Gain but Holiday Trading May Distort Monday Open

Risk-sensitive currency pairs extended gains during thin holiday trading, with EUR/USD rising 0.2% to 1.0840 and GBP/USD advancing to 1.2750. USD/JPY climbed 0.3% to 145.20 as yen weakened amid improving risk appetite. USD/CHF declined to 0.8920, reflecting Swiss franc strength as a partial safe-haven bid persists. The low volume environment typical of holiday periods has amplified price movements, potentially creating false signals ahead of Monday's full market open. Traders are positioning cautiously as liquidity remains below normal levels, increasing the risk of gap openings and volatile price swings when regular trading resumes. Technical levels established during low-volume sessions often prove unreliable, suggesting current gains may face immediate tests. Market participants should prepare for potential reversals or accelerated moves as institutional flows return, particularly in USD/JPY and EUR/USD pairs.