Forex trading is a global market that operates 24 hours a day, 5 days a week. It is the largest financial market in the world with an average daily trading volume of $5.3 trillion. The New York session, also known as the North American session, is one of the most active trading sessions in the forex market. In this article, we will discuss the currency pairs that are most commonly traded during the New York session.
The New York session opens at 8:00 AM EST and closes at 5:00 PM EST. During this time, the forex market is most active, as the European and North American markets overlap. The New York session is known for its high volatility, which provides traders with ample opportunities to profit from currency movements.
The United States Dollar (USD) is the most widely traded currency in the world and is involved in more than 80% of all forex transactions. Therefore, it is no surprise that the most commonly traded currency pairs during the New York session involve the USD. The following are the top currency pairs traded during the New York session:
1. EUR/USD – Euro/US Dollar
The EUR/USD is the most traded currency pair in the forex market, and it is also the most popular pair traded during the New York session. The Eurozone is a major economic powerhouse, and the USD is the world’s reserve currency, making this pair highly liquid and volatile. The EUR/USD accounts for approximately 30% of all forex trades.
2. USD/JPY – US Dollar/Japanese Yen
The USD/JPY is the second most traded currency pair during the New York session. The Japanese Yen is a safe-haven currency, and it tends to gain value during times of economic uncertainty. The USD/JPY accounts for approximately 18% of all forex trades.
3. GBP/USD – British Pound/US Dollar
The GBP/USD is the third most traded currency pair during the New York session. The British Pound is the world’s oldest currency, and it is involved in a significant amount of forex trading. The GBP/USD accounts for approximately 9% of all forex trades.
4. USD/CAD – US Dollar/Canadian Dollar
The USD/CAD is the fourth most traded currency pair during the New York session. Canada is the world’s second-largest producer of oil, and the Canadian dollar is closely tied to the price of crude oil. The USD/CAD accounts for approximately 5% of all forex trades.
5. AUD/USD – Australian Dollar/US Dollar
The AUD/USD is the fifth most traded currency pair during the New York session. Australia is a major exporter of commodities, including gold, iron ore, and coal. The AUD/USD accounts for approximately 5% of all forex trades.
Conclusion:
In conclusion, the New York session is one of the most active trading sessions in the forex market. The USD is involved in more than 80% of all forex transactions, making it the most widely traded currency in the world. During the New York session, the most commonly traded currency pairs involve the USD, such as the EUR/USD, USD/JPY, GBP/USD, USD/CAD, and AUD/USD. These currency pairs are highly liquid and volatile, providing traders with ample opportunities to profit from currency movements. As with any investment, it is important to conduct thorough research and analysis before entering into any forex trades.
