Forex trading is a 24-hour market, with trading activities going on around the clock in different parts of the world. As a result, different currency pairs are traded at various times of the day. Knowing the best time to trade a particular currency pair can significantly boost your trading performance. In this article, we explore the most active trading times for each currency pair.
EUR/USD
The EUR/USD currency pair is the most heavily traded in the forex market, accounting for about 30% of all trading volume. The pair is most active during the European and US trading sessions, with the most significant trading activity occurring between 8:00 am and 12:00 pm EST. During this time, there is a high likelihood of volatility, which can lead to significant price movements.
GBP/USD
The GBP/USD currency pair, also known as the Cable, is the second most traded pair, accounting for about 14% of all forex trading volume. The pair is most active during the European and US trading sessions, with the most significant trading activity occurring between 8:00 am and 12:00 pm EST. During this period, traders can take advantage of the high volatility to make profitable trades.
USD/JPY
The USD/JPY currency pair is the third most traded pair, accounting for about 13% of all forex trading volume. The pair is most active during the Asian and US trading sessions, with the most significant trading activity occurring between 12:00 am and 3:00 am EST. During this time, traders can take advantage of the high liquidity and tight spreads to make profitable trades.
USD/CHF
The USD/CHF currency pair is also known as the Swissy and is the fourth most traded pair, accounting for about 5% of all forex trading volume. The pair is most active during the European and US trading sessions, with the most significant trading activity occurring between 8:00 am and 12:00 pm EST. During this period, traders can take advantage of the high volatility to make profitable trades.
AUD/USD
The AUD/USD currency pair is the fifth most traded pair, accounting for about 5% of all forex trading volume. The pair is most active during the Asian and US trading sessions, with the most significant trading activity occurring between 7:00 pm and 2:00 am EST. During this period, traders can take advantage of the high liquidity and tight spreads to make profitable trades.
USD/CAD
The USD/CAD currency pair is the sixth most traded pair, accounting for about 4% of all forex trading volume. The pair is most active during the US and Canadian trading sessions, with the most significant trading activity occurring between 7:00 am and 12:00 pm EST. During this time, traders can take advantage of the high volatility to make profitable trades.
EUR/JPY
The EUR/JPY currency pair is the seventh most traded pair, accounting for about 3% of all forex trading volume. The pair is most active during the European and Asian trading sessions, with the most significant trading activity occurring between 2:00 am and 5:00 am EST. During this period, traders can take advantage of the high liquidity and tight spreads to make profitable trades.
GBP/JPY
The GBP/JPY currency pair is the eighth most traded pair, accounting for about 2% of all forex trading volume. The pair is most active during the European and Asian trading sessions, with the most significant trading activity occurring between 2:00 am and 5:00 am EST. During this time, traders can take advantage of the high volatility to make profitable trades.
EUR/GBP
The EUR/GBP currency pair is the ninth most traded pair, accounting for about 2% of all forex trading volume. The pair is most active during the European trading session, with the most significant trading activity occurring between 2:00 am and 5:00 am EST. During this period, traders can take advantage of the high liquidity and tight spreads to make profitable trades.
USD/HKD
The USD/HKD currency pair is the tenth most traded pair, accounting for about 1% of all forex trading volume. The pair is most active during the Asian trading session, with the most significant trading activity occurring between 7:00 pm and 2:00 am EST. During this period, traders can take advantage of the high liquidity and tight spreads to make profitable trades.
In conclusion, understanding the best time to trade a specific currency pair can significantly improve your trading performance. It is crucial to pay attention to the different trading sessions, as this can affect the liquidity, volatility, and spreads of different currency pairs. As a trader, it is essential to stay informed about the market and the different trading sessions to make informed trading decisions.
