Forex volumes fluctuate all the same and are especially during economic data releases. High volume can lead to a lot of volatility, but this is not always the case.
Low volumes can also produce high levels of volatility. Infact in recent years some major support and resistance points have broken during low volumes, often during bank holidays.
If we go back to thanks giving 2006. Some major moves occurred then. The US Dollar depreciated considerably against many of the major currencies.
Another factor massively affected by forex volumes is the ability for big players such as central banks and large investment banks to move the market. The forex market is too big to be manipuled on a long term basis, but price can be moved noticeably when abig trader buys or sells a lot of a currency pair during low volumes.
