The London Stock Exchange will not be open on Monday, 25 August 2025, due to the Bank Holiday.
This closure will result in lower trading activity within the EU/UK timezone.
Impact Of Market Closure
With London closed today, we’re seeing very thin liquidity across UK and European markets. This means any orders going through can cause bigger price swings than usual, especially in FTSE 100 futures and GBP currency pairs. It’s a day to be cautious, as even small news items could create disproportionate moves until full volume returns tomorrow.
This quiet start to the week comes after the latest UK inflation data from July 2025 came in slightly above expectations at 3.1%, keeping pressure on the Bank of England. This backdrop of persistent inflation means the market is extremely sensitive to any new information while it’s this illiquid. We should therefore watch for any surprising data out of the US later, as it could have an exaggerated effect on cable (GBP/USD).
Looking ahead, the main event will be the Jackson Hole Symposium later this week, a historically significant event for setting monetary policy expectations. We remember how comments from central bankers in past years, like in the post-pandemic era of 2022, triggered significant market volatility. Buying some cheap, out-of-the-money options on major indices could be a prudent way to position for a potential spike in volatility.
Trading Volume And Volatility Trends
Historically, the period after the August bank holiday often marks a return of trading volume and directional momentum leading into September. Data from previous years shows that implied volatility for both equities and currencies tends to bottom out in late August before climbing into the autumn. Consequently, now is a critical time to review risk on existing positions and consider strategies that benefit from a rise in market activity.
