The forex market is a global decentralized market where currencies are traded 24 hours a day, 5 days a week. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. However, even though the forex market is open 24 hours a day, it does not mean that it is always active. In fact, there are specific times during the day when the forex market is more active and when it is less active. In this article, we will discuss when the forex market closes in the UK and what factors affect the market’s activity.
When does the forex market close in the UK?
The forex market is open 24 hours a day, 5 days a week, from Monday to Friday. The market opens in Asia on Sunday evening and closes in New York on Friday evening. However, even though the forex market is open 24 hours a day, it does not mean that all currency pairs are always active. The activity of currency pairs depends on the time of day and the trading sessions that are open.
In the UK, the forex market opens at 10 pm on Sunday evening and closes at 10 pm on Friday evening, with the exception of the Christmas and New Year holidays. During this time, traders can trade the currency pairs that are active during the London trading session. The London trading session is the most active trading session, and it accounts for more than 30% of the daily trading volume.
The London trading session overlaps with the New York trading session for a few hours, which is why the forex market is most active during this time. The New York trading session opens at 1 pm and closes at 10 pm in the UK. During this time, traders can trade the currency pairs that are active during the New York trading session.
Factors that affect the forex market’s activity
There are several factors that affect the forex market’s activity, including the time of day, economic events, and geopolitical events. The time of day is one of the most important factors that affect the forex market’s activity. As we mentioned earlier, the forex market is most active during the London and New York trading sessions. During these sessions, traders from all over the world are active, which increases the trading volume and volatility.
Economic events are another factor that affects the forex market’s activity. Economic events such as interest rate decisions, GDP releases, and employment reports can have a significant impact on currency pairs. Traders often pay close attention to these events and adjust their trading strategies accordingly.
Geopolitical events are also important factors that affect the forex market’s activity. Geopolitical events such as elections, wars, and natural disasters can cause significant volatility in the forex market. Traders often monitor these events closely and adjust their trading strategies accordingly.
Conclusion
In conclusion, the forex market is a global decentralized market where currencies are traded 24 hours a day, 5 days a week. In the UK, the forex market opens at 10 pm on Sunday evening and closes at 10 pm on Friday evening. The most active trading sessions are the London and New York trading sessions, which account for more than 50% of the daily trading volume. The activity of the forex market is affected by several factors, including the time of day, economic events, and geopolitical events. Traders should pay close attention to these factors and adjust their trading strategies accordingly.
