Forex, or foreign exchange, is the decentralized market where currencies are traded. It is the largest and most liquid market in the world, with an estimated daily turnover of over $5 trillion. The forex market is open 24 hours a day, five days a week, with trading sessions starting in Asia and ending in North America.
The current forex market that is open is the European session. This session starts at 8:00 AM GMT and ends at 4:00 PM GMT. It is the second-largest trading session in terms of trading volume, after the Asian session. The European session is also known as the London session, as it overlaps with the opening of the London Stock Exchange.
The European session is characterized by high volatility and liquidity, as it is the time when the major financial centers in Europe are open for business. These centers include London, Frankfurt, Paris, and Zurich. The European session is also the time when the economic data and news releases from the European Union are released, which can have a significant impact on the currency markets.
One of the most important currency pairs traded during the European session is the EUR/USD, which is the most widely traded currency pair in the world. The EUR/USD represents the exchange rate between the euro and the US dollar. The euro is the currency of the European Union, while the US dollar is the currency of the United States. The EUR/USD is also known as the ‘fiber’ in the forex market.
Other popular currency pairs traded during the European session include the GBP/USD (British pound/US dollar), USD/CHF (US dollar/Swiss franc), and USD/JPY (US dollar/Japanese yen). These currency pairs are also known as major currency pairs.
The European session is also the time when the currency markets in Asia are still open, which means that there is a significant overlap between the two sessions. This overlap is known as the ‘golden hours’ in the forex market, and it is the time when the trading volume and volatility are at their highest.
During the European session, traders use various trading strategies to take advantage of the market conditions. These strategies include technical analysis, fundamental analysis, and news trading. Technical analysis involves using charts and technical indicators to identify trading opportunities, while fundamental analysis involves analyzing economic data and news releases to determine the direction of the market. News trading involves trading based on the release of important economic data and news events.
In conclusion, the current forex market that is open is the European session, which is characterized by high volatility and liquidity. It is the time when the major financial centers in Europe are open for business, and economic data and news releases from the European Union are released. Traders use various trading strategies to take advantage of the market conditions, including technical analysis, fundamental analysis, and news trading.
