The foreign exchange market, also known as the forex market, operates 24 hours a day, five days a week. However, there are specific hours during which the market is more active and volatile. This is when traders can take advantage of market movements to make profits. If you’re wondering what time USD Forex trading starts on Sunday, read on to find out.
Forex trading hours are primarily based on the opening and closing times of the major financial centers around the world. These centers include New York, London, Tokyo, and Sydney. The forex market opens on Sunday at 5:00 pm EST when the Sydney session begins. This is the first session of the week, and it sets the tone for the rest of the week.
The Sydney session lasts until 2:00 am EST when the Tokyo session starts. The Tokyo session is also known as the Asian session. During this session, traders in Japan, Hong Kong, Singapore, and other Asian financial centers start trading. The Asian session is known for its low volatility, as there are fewer market participants during this time.
However, there are some exceptions to this rule. For example, during major economic events, such as rate decisions by central banks or important economic data releases, the Asian session can become more volatile.
The London session starts at 3:00 am EST and is considered the most active session in the forex market. During this session, traders in Europe and the UK start trading. The London session overlaps with the Asian session, which creates higher volatility and more trading opportunities.
The New York session starts at 8:00 am EST and is the last session of the day. During this session, traders in North America start trading. The New York session is also the most active session, with the highest trading volume. This is because it overlaps with the London session, creating a period of high volatility.
In summary, USD Forex trading starts on Sunday at 5:00 pm EST, during the Sydney session. However, the Sydney session is known for its low volatility, and traders may not find many opportunities to trade during this time. The best time to trade USD Forex is during the London and New York sessions, when the market is most active and volatile.
It’s important to note that Forex trading hours can vary depending on the country and the broker. Some brokers may offer extended trading hours, allowing traders to take advantage of market movements outside of the regular trading hours. It’s important to check with your broker to find out their specific trading hours.
In conclusion, knowing what time USD Forex trading starts on Sunday is just the beginning. Traders must also be aware of the different trading sessions and the best times to trade to maximize their profits. It’s important to have a trading plan and strategy in place to take advantage of market movements and manage risk effectively.
