The forex market is a decentralized marketplace where different currencies are traded globally. It operates 24/7, except for weekends. Trading hours for forex differ from one country to another due to time zone differences. Forex trading begins on Sunday evening in some countries, such as Australia and New Zealand, while it starts on Monday morning in other countries like the United States and Canada. So, when exactly does forex resume on Sunday? This article will provide a detailed explanation.
Forex trading hours vary depending on the time zone of the country or region. This is because the forex market operates on a global scale, with different countries participating at different times. The forex market never sleeps, but it does have periodic breaks for weekends and holidays. The market closes on Friday evening and reopens on Sunday evening in Australia and New Zealand, while it opens on Monday morning in other parts of the world.
The forex market is divided into three major trading sessions – the Asian, European, and American sessions. The Asian session starts at 9:00 pm GMT on Sunday and ends at 8:00 am GMT on Monday. This session is dominated by Japan, China, Australia, and New Zealand. The European session starts at 7:00 am GMT on Monday and ends at 4:00 pm GMT. This session is dominated by London and other major financial centers in Europe. The American session starts at 12:00 pm GMT and ends at 9:00 pm GMT. This session is dominated by New York and other major financial centers in North America.
The forex market is open 24 hours a day, five days a week. However, trading activity varies during different sessions. The Asian session is known for its low volatility, while the European and American sessions are known for their high volatility. The Asian session is also known as the “quiet time” because most major economic news releases are not made during this session. Most traders use this time to analyze the market and plan their trades for the coming sessions.
The forex market is closed on weekends and holidays. This is because banks and financial institutions that are major players in the forex market are closed during these periods. Trading volumes are also low during weekends, making it difficult to execute trades. However, the forex market is still open for trading during weekends, but with limited liquidity and narrow trading ranges. This means that traders can still make profits during weekends, but they need to be more cautious and patient.
In conclusion, the forex market is a 24/7 market that operates on a global scale. Trading hours vary depending on the time zone of the country or region. Forex trading resumes on Sunday evening in some countries and on Monday morning in others. The market is closed on weekends and holidays, but it is still open for trading with limited liquidity and narrow trading ranges. Traders need to be cautious and patient when trading during weekends and should use this time to analyze the market and plan their trades for the coming sessions.
