Next week, market liquidity is expected to recover. Danske Bank reveals the reasons behind the light trading activity at the end of the year.

2026-01-04 18:37:26

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Year-end holidays typically lead to a decline in market liquidity, as many traders enter holiday mode or close positions early, resulting in relatively low trading activity in global financial markets this week. Jens Navige Pedersen, a foreign exchange and interest rate strategist at Danske Bank, provided an in-depth analysis of this situation.

According to Odaily Planet Daily, Pedersen believes that the current low liquidity environment will see a turning point next week. As more economic data is released intensively, market participants’ focus will shift back, and liquidity is expected to improve significantly.

Next Week’s Data Calendar Scheduled for Major Releases

The economic data to be released next week will be a key driver of market movements. This includes the U.S. December non-farm payrolls report scheduled for January 9, which covers critical labor market indicators and has always attracted significant investor attention. Additionally, the ISM Manufacturing Purchasing Managers’ Index (PMI) survey will also be released next week. The combined release of these two data points will greatly boost market trading activity.

As important economic data are gradually announced, market participants’ trading enthusiasm is expected to be reignited, and the liquidity environment is likely to see a noticeable improvement next week.

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