The forex market is the largest financial market in the world, with a daily trading volume of over $6 trillion. It is open 24 hours a day, five days a week, with different trading sessions that overlap with each other. The US session is one of the most important trading sessions in the forex market, as it is when the New York Stock Exchange opens and the US economic data is released. In this article, we will discuss what forex pairs have the most volume during the US session.
Before we dive into the details, it’s important to understand what currency pairs are. In the forex market, a currency pair is the quotation of two different currencies, where one currency is quoted against the other. For example, the EUR/USD currency pair represents the euro against the US dollar. Forex traders buy or sell currency pairs with the expectation of making a profit from the exchange rate fluctuations.
Now, let’s take a closer look at the forex pairs that have the most volume during the US session. The US session starts at 8 AM EST and ends at 5 PM EST, and it overlaps with the European session for four hours. During this time, the following forex pairs are the most actively traded:
1. EUR/USD
The EUR/USD currency pair is the most traded forex pair in the world, with a daily trading volume of over $1.5 trillion. It represents the euro against the US dollar and is considered the benchmark for the forex market. During the US session, the EUR/USD pair is the most actively traded, as it is influenced by the US economic data releases, such as the non-farm payrolls, GDP, and inflation reports.
2. USD/JPY
The USD/JPY currency pair represents the US dollar against the Japanese yen and is the second most traded forex pair in the world, with a daily trading volume of over $900 billion. It is popular among traders due to its high liquidity and tight spreads. During the US session, the USD/JPY pair is influenced by the US economic data releases and the Bank of Japan’s monetary policy decisions.
3. GBP/USD
The GBP/USD currency pair represents the British pound against the US dollar and is the third most traded forex pair in the world, with a daily trading volume of over $450 billion. It is also known as the “cable” due to the underwater cable that was used to transmit the exchange rate between London and New York in the 19th century. During the US session, the GBP/USD pair is influenced by the US economic data releases and the Brexit negotiations.
4. USD/CHF
The USD/CHF currency pair represents the US dollar against the Swiss franc and is the fourth most traded forex pair in the world, with a daily trading volume of over $350 billion. It is popular among traders due to its safe-haven status and the Swiss National Bank’s monetary policy decisions. During the US session, the USD/CHF pair is influenced by the US economic data releases and the Swiss National Bank’s monetary policy decisions.
5. USD/CAD
The USD/CAD currency pair represents the US dollar against the Canadian dollar and is the fifth most traded forex pair in the world, with a daily trading volume of over $200 billion. It is popular among traders due to the correlation with the oil prices and the Bank of Canada’s monetary policy decisions. During the US session, the USD/CAD pair is influenced by the US economic data releases and the Bank of Canada’s monetary policy decisions.
In conclusion, the forex pairs that have the most volume during the US session are the EUR/USD, USD/JPY, GBP/USD, USD/CHF, and USD/CAD. These currency pairs are influenced by the US economic data releases and the central banks’ monetary policy decisions. As a forex trader, it’s important to keep an eye on these currency pairs during the US session to take advantage of the high trading volume and volatility.
