Foreign exchange markets, or Forex for short, operate 24 hours a day, five days a week. This is due to the fact that Forex trading takes place across the globe in various time zones. The United States Dollar (USD) is one of the most widely traded currencies in the Forex market, with a significant number of traders looking to buy or sell the currency pair at all times of the day.
So, what time does USD Forex start trading? The answer is that it depends on the location of the market. Forex trading begins in the Asia-Pacific region on Sunday evening, Eastern Standard Time (EST), and continues until Friday afternoon in New York. This means that USD Forex trading starts at 5 pm EST on Sunday and ends at 5 pm EST on Friday.
The Forex market is divided into four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session is characterized by the location of the market and the major currencies that are traded during that time period.
The Asian session, which starts at 5 pm EST on Sunday and ends at 2 am EST on Monday, is the first session of the week. The major currencies that are traded during this session are the Japanese yen, the Australian dollar, and the New Zealand dollar.
The European session, which starts at 2 am EST and ends at 11 am EST, is the most active session of the day. This is because it overlaps with the Asian session and the North American session. The major currencies that are traded during this session are the Euro, the British pound, and the Swiss franc.
The North American session, which starts at 8 am EST and ends at 5 pm EST, is the second most active session of the day. This session overlaps with the European session, which makes it a very busy time for traders. The major currencies that are traded during this session are the US dollar, the Canadian dollar, and the Mexican peso.
The Pacific session, which starts at 5 pm EST and ends at 2 am EST, is the last session of the day. This session is not as active as the other sessions, but it is still an important time for traders who are looking to make trades before the market closes for the weekend. The major currencies that are traded during this session are the Japanese yen, the Australian dollar, and the New Zealand dollar.
It is important to note that there are times during the day when the market is more volatile than others. For example, during the overlap between the European and North American sessions, there is a lot of trading activity, which can lead to significant price movements in the market. Traders should be aware of these times and adjust their trading strategies accordingly.
In conclusion, USD Forex trading starts at 5 pm EST on Sunday and ends at 5 pm EST on Friday. The Forex market is open 24 hours a day, five days a week, and is divided into four major trading sessions. Each session is characterized by the location of the market and the major currencies that are traded during that time period. Traders should be aware of the times when the market is most active and adjust their trading strategies accordingly.
