Forex trading has become an essential part of the global finance industry, and the Asian forex markets play a crucial role in it. With the rise of the Asian economy and the growth of the forex market in the region, many traders are keen to know what time the Asian forex markets open eastern time.
The forex market operates 24 hours a day, five days a week, and it is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. The Asian forex markets include the Sydney and Tokyo sessions, which are the first to open in the trading week.
The Sydney forex market opens at 5:00 PM EST on Sunday and closes at 2:00 AM EST on Monday. This session is the smallest of the four major trading sessions, accounting for only 4% of the total forex trading volume. However, it still plays a significant role in the forex market, as it sets the tone for the rest of the trading week.
Following the Sydney session, the Tokyo session opens at 7:00 PM EST on Sunday and closes at 4:00 AM EST on Monday. This session is the most active of the Asian forex markets, accounting for around 30% of the total forex trading volume. The Tokyo session is also known as the Asian session, as it overlaps with the Sydney session for two hours, creating a period of high volatility and liquidity.
The Asian forex markets are known for their unique characteristics, such as the yen carry trade, which involves borrowing low-yielding Japanese yen to invest in higher-yielding currencies. The Asian session is also known for its focus on commodity currencies, such as the Australian and New Zealand dollars, due to their close ties to the Asian economy.
Traders who are interested in trading the Asian forex markets should be aware of the economic data releases and events that can impact the market. The Asian session is known for its volatility, as it is influenced by news and events from both the Asian and European markets. The release of economic data, such as the Chinese GDP, can have a significant impact on the Asian forex markets, as they are closely tied to the Chinese economy.
In conclusion, the Asian forex markets open at 5:00 PM EST on Sunday with the Sydney session, followed by the Tokyo session at 7:00 PM EST. These sessions are the first to open in the trading week and play a crucial role in setting the tone for the rest of the week. Traders who are interested in trading the Asian forex markets should be aware of their unique characteristics, such as the yen carry trade and their focus on commodity currencies. They should also keep an eye on economic data releases and events that can impact the market, especially during the volatile Asian session.
