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Talking Points:

• As expected, the liquidity drain in the North American session curbed market development Monday

• Despite the lack of participation, pairs like GBPUSD, USDJPY and EURNZD produced inciting moves

• Between a return of liquidity and wave of scheduled event risk, be ready for volatility and trends

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There were two faces of Monday price action. On the one hand, we had exciting efforts such as the GBPUSD's channel reversal and USDJPY's gap higher. On the other, benchmarks like the S&P 500 (futures and CFDs) were trenching into ever-tighter congestion. While the sharp technical moves of the majors were real enough, the equity indexes offered a more accurate description of the backdrop for activity. Liquidity was drained to start this week due to the US and Canadian market holiday - a period where professional traders expect conditions to remain quiet. Yet, as holiday conditions pass, will the short-term technical developments stand? Is the seasonal revival a spark for historically low activity rates? And, is scheduled event risk capable of generating lasting trends? We discuss that and more in today's Trading Video.

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