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What time forex index closes?

Forex indices are a popular tool used by traders to track the performance of a particular currency against a basket of other currencies. These indices are available for different time frames, from hourly to daily, weekly, and even monthly. Knowing the closing time of a forex index is crucial for traders to make informed decisions about their investment strategies. In this article, we will explore what time forex index closes and the factors that determine it.

Forex market hours

Before delving into the closing time of forex indices, it’s essential to understand the forex market’s trading hours. The forex market operates 24 hours a day, five days a week, starting from Sunday at 5 pm EST until Friday at 5 pm EST. However, different forex sessions are active during different times of the day. These sessions are the Asian session, European session, and the US session.

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The Asian session starts at 7 pm EST and ends at 4 am EST. During this session, the Japanese yen, Australian dollar, and New Zealand dollar are the most active currencies.

The European session starts at 3 am EST and ends at 12 pm EST. During this session, the euro, British pound, and Swiss franc are the most active currencies.

The US session starts at 8 am EST and ends at 5 pm EST. During this session, the US dollar is the most active currency.

Forex indices closing time

Forex indices are calculated using a weighted average of the exchange rates of a particular currency against a basket of other currencies. These indices are usually available in real-time, and their closing time depends on the time zone of the exchange where they are traded. For instance, the closing time for the US dollar index (USDX) is 5 pm EST, which is the same as the closing time for the New York Stock Exchange (NYSE).

Factors that determine forex index closing time

1. Time zone of the exchange: The closing time of forex indices depends on the time zone of the exchange where they are traded. For instance, the closing time for the euro index (EURX) is 4 pm GMT, which is the same as the closing time for the Frankfurt Stock Exchange.

2. Market liquidity: The closing time of forex indices also depends on market liquidity. If there is low liquidity in the market, the exchange may extend the trading hours to allow traders to close their positions.

3. Economic news releases: Economic news releases can cause significant price movements in the forex market, and as a result, exchanges may extend their trading hours to accommodate the increased volatility.

Conclusion

In conclusion, the closing time of forex indices depends on the time zone of the exchange where they are traded, market liquidity, and economic news releases. It’s essential for traders to know the closing time of forex indices to make informed decisions about their investment strategies. Traders should also be aware of the different forex sessions’ trading hours to take advantage of the market’s most active periods.

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