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    UK markets are closed today for a holiday, impacting liquidity in the EU/UK trading timezone.

    by VT Markets
    /
    Aug 25, 2025
    The London Stock Exchange will be closed on Monday, August 25, 2025, for a Bank Holiday. This closure will lead to reduced trading activity in the EU/UK timezone.

    Impact of Market Closure

    With London closed today, UK and European markets are seeing very low liquidity. This means that any orders placed can lead to larger price changes than normal, especially for FTSE 100 futures and GBP currency pairs. It’s important to be cautious, as even minor news can cause significant market movements until trading volume returns to normal tomorrow. This slow start to the week follows UK inflation data from July 2025, which was slightly above expectations at 3.1%. This keeps pressure on the Bank of England. Given the ongoing inflation, the market is highly responsive to any new information during this time of low liquidity. We should pay close attention to any surprising data from the US later, as it could greatly impact the GBP/USD exchange rate. Looking forward, a key event will be the Jackson Hole Symposium later this week. This event is important for shaping expectations around monetary policy. In the past, comments from central bankers, especially in the post-pandemic period of 2022, have caused significant market swings. Considering buying inexpensive, out-of-the-money options on major indices could be a smart move for those anticipating a spike in volatility.

    Trading Volume and Volatility Trends

    Historically, the period after the August bank holiday often sees a return of trading volume and directional momentum as we enter September. Data from previous years indicates that implied volatility for both stocks and currencies usually reaches a low point in late August before rising into the fall. Therefore, now is an important time to assess risks on existing positions and think about strategies that take advantage of increased market activity. Create your live VT Markets account and start trading now.

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