Forex trading is a global market that operates 24 hours a day, five days a week. As such, it is important to know which forex pairs trade the best in each session. This knowledge can help traders optimize their strategy and maximize their profits. In this article, we will discuss the best forex pairs to trade in each session.
Asian Session (Tokyo)
The Asian session (Tokyo) begins at 00:00 GMT and ends at 09:00 GMT. During this session, the forex market is relatively quiet, with low volatility and low trading volume. However, there are still some forex pairs that are worth trading during this session.
One of the best forex pairs to trade during the Asian session is the USD/JPY. This pair is heavily traded during the Tokyo session due to the presence of Japanese market participants. The pair’s liquidity and volatility make it an excellent choice for traders looking to capitalize on short-term price movements.
Another forex pair that is worth trading during the Asian session is the AUD/USD. This pair is heavily influenced by news and economic data from Australia and China, which are major trading partners in the region. Traders should keep an eye on economic releases from these two countries to capitalize on price movements.
European Session (London)
The European session (London) begins at 07:00 GMT and ends at 16:00 GMT. This session is known for its high volatility and trading volume, making it an excellent time to trade forex. There are several forex pairs that are particularly active during this session.
One of the most heavily traded forex pairs during the European session is the EUR/USD. This pair accounts for more than 20% of the daily forex volume and is heavily influenced by economic data releases and central bank announcements from the Eurozone and the United States. Traders should pay attention to these events to capitalize on price movements.
Another forex pair that is worth trading during the European session is the GBP/USD. This pair is heavily influenced by news and economic data from the United Kingdom, which is a major trading partner in the region. Traders should keep an eye on economic releases from the UK to capitalize on price movements.
American Session (New York)
The American session (New York) begins at 12:00 GMT and ends at 21:00 GMT. This session is known for its high volatility and trading volume, making it an excellent time to trade forex. There are several forex pairs that are particularly active during this session.
One of the most heavily traded forex pairs during the American session is the USD/CAD. This pair is heavily influenced by news and economic data from Canada and the United States, which are major trading partners in the region. Traders should keep an eye on economic releases from these two countries to capitalize on price movements.
Another forex pair that is worth trading during the American session is the USD/CHF. This pair is heavily traded during the New York session due to the presence of Swiss market participants. The pair’s liquidity and volatility make it an excellent choice for traders looking to capitalize on short-term price movements.
Conclusion
In conclusion, knowing which forex pairs trade the best in each session is crucial for traders looking to optimize their strategy and maximize their profits. During the Asian session, the USD/JPY and AUD/USD are worth trading. During the European session, the EUR/USD and GBP/USD are particularly active. Finally, during the American session, the USD/CAD and USD/CHF are heavily traded. Traders should pay attention to news and economic data releases to capitalize on price movements in these forex pairs.
