Forex, short for foreign exchange, is a decentralized financial market where traders buy, sell, and exchange currencies. It operates 24 hours a day, five days a week, from Monday to Friday. However, the market does not operate on weekends, which means that forex trading is closed on Saturdays and Sundays. So, what time does forex start trading on Sunday?
Forex trading is a global market, and it operates in different time zones. The market opens in Sydney, Australia, on Monday morning, which is Sunday evening in New York, the financial hub of the world. As the day progresses, the market opens in Tokyo, Hong Kong, Singapore, Frankfurt, London, and finally, New York. Therefore, the forex market follows a 24-hour cycle, which means that trading starts and ends at different times depending on the time zone.
In general, forex trading starts on Sunday evening at 5 pm EST (Eastern Standard Time) in New York, which is Monday morning at 9 am in Sydney, Australia. This is because Sydney is the first financial center to open on Monday, followed by Tokyo, Hong Kong, Singapore, and so on. As the day progresses, the forex market follows the sun, and it opens and closes in different financial centers around the world.
It is important to note that the forex market does not open all at once. Instead, it operates in three major trading sessions: Asian, European, and American. Each session has its own characteristics, and traders need to be aware of the market’s behavior during each session. The Asian session starts in Sydney and ends in Tokyo, the European session starts in Frankfurt and ends in London, and the American session starts in New York and ends in Chicago.
The Asian session is known for its low volatility and liquidity, and it is characterized by the trading of the Japanese yen, Australian dollar, and New Zealand dollar. The European session is the most active session, and it is characterized by the trading of the euro, pound sterling, and Swiss franc. The American session is also active, and it is characterized by the trading of the US dollar, Canadian dollar, and Mexican peso.
Traders need to be aware of the opening and closing times of each session, as well as the major economic events that may affect the market’s behavior. For example, the release of the US Non-Farm Payroll report, which measures the number of jobs added or lost in the US economy, can cause significant volatility in the forex market. Similarly, the European Central Bank’s monetary policy decision can affect the value of the euro.
In conclusion, forex trading starts on Sunday evening at 5 pm EST in New York, which is Monday morning in Sydney, Australia. However, the forex market operates in different time zones, and it follows a 24-hour cycle. Traders need to be aware of the opening and closing times of each trading session, as well as the major economic events that may affect the market’s behavior.
