How the Weekend Exchange Rate Changes and Why It Matters

Why Do Exchange Rates Fluctuate Over the Weekend?

Exchange rates can keep changing even when banks are closed on the weekend. This happens because currency values are affected by global financial markets, political news, and economic indicators that do not stop on Saturday or Sunday. Traders, institutions, and online platforms continue to respond to events outside normal banking hours. This creates fluctuations in the foreign exchange market.

Does the Forex Market Close on Weekends?

Yes, the foreign exchange (forex) market officially closes late Friday night (in the UK) and opens again on Sunday evening. Still, some trading activities can happen, especially with cryptocurrencies or on weekend trading platforms. These activities may affect how people see currency values.

The forex market is not controlled by any one place. It runs all day and night from Monday to Friday. On the weekend, most trading stops, but feelings and outside influences still change currency values. This is especially true for currency pairs like GBP/USD and EUR/USD.

What Causes Exchange Rate Fluctuations Over the Weekend?

Even if you are not trading, the exchange rate you check on a Saturday or Sunday might be different from what it was on Friday. This change happens due to updates in the currency markets, economic conditions, or political events happening in the rest of the world. Changes in economic growth, policy updates, or sudden crises can also impact currency exchange rates even when the markets are closed.

These movements can have the opposite effect on various currencies based on the news. For instance, if there’s a bad report about the US dollar, it might make investors favour the euro or GBP. This change can affect how much foreign currency your first transfer will provide on Monday.

How Much Do Weekend Exchange Rates Vary?

Weekend changes are usually small, but major world events can lead to big shifts. On average:

Larger shifts may occur following:

• Major US Federal Reserve decisions on interest rates
• Announcements from the Bank of England
• Unforeseen global events

When you set up a money transfer over the weekend, the exchange rate used might be based on a market rate estimate. It could also use the last available foreign exchange rate from Friday.

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How Do Transfer Services Handle Weekend Rates?

Do money transfers use real-time rates on weekends?

Most money transfer services and currency exchange platforms do not provide real-time market rates on weekends. Instead, they usually:

• Confirm the Friday closing rate.
• Add a weekend markup or spread.
• Provide a delayed rate that gets processed on Monday morning.

This makes sure they are safe from volatility when the foreign exchange market opens again.

Can I transfer money on weekends?

Yes, many online platforms, mobile apps, and digital financial institutions accept weekend transfers. However:

• The amount of money delivered might not show the final exchange rate until Monday.
• A weekend rate could appear while you make the transfer.
• The delivery time usually depends on the next working day.

How Do Interest Rates and Monetary Policy Affect Weekend Rates?

Interest rates determined by central banks, such as the Bank of England, European Central Bank, or Federal Reserve, affect how people view a currency. If news about higher interest rates or lower interest rates comes out on a Friday, it might change what investors expect. This can impact the exchange rate when the markets open again.

Additionally:

• Gross domestic product (GDP) updates
• Reports on trade deficit and trade balance
• Changes in monetary policy

…can all impact how the market sees the strength or weakness of a currency during a period of time when trading is stopped.

When central banks change interest rates because of high inflation, reliance on foreign goods, or falling asset prices, it impacts yields and market trust. These changes can cause bigger exchange rate fluctuations when the market gets back to normal.

Is It a Good Idea to Exchange Money on a Weekend?

It depends on the purpose and provider:

• If you are sending small amounts, using a credit card or doing a quick transfer through a mobile app may feel about the same.
• However, for large sums of money, like those for business or investment, waiting until Monday morning could give you a better market exchange rate.
• Some providers let you choose a future date or lock in a rate from Friday to get more stability.
• The bank account that gets the transfer might not show the converted funds until the next working day.

If you are changing home currency or local currency in a different country, it is better to use a specialist money transfer provider. Look for one that is regulated by the Financial Conduct Authority (FCA). This way, you will get better pricing and lower risk.

Tips to Minimise Risk from Weekend Fluctuations

• Compare different platforms that have clear fees and weekend pricing rules.
• Use services that allow you to confirm Friday’s rate for transfers on weekends.
• Do not start big transactions without checking the current exchange rate.
• Plan your conversions for weekdays if market stability matters to you.
• Keep an eye on global currency markets for signs of possible weekend volatility.

Correct as of 17 April 2025

FAQs about exchange rates and weekend fluctuations

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