The foreign exchange market (Forex) operates 24 hours a day, five days a week, with trading sessions overlapping in different time zones. The three main trading sessions are the Asian, European, and American sessions. The New York Session is the last trading session of the day and is considered the most active and volatile session. In this article, we will delve into when the New York Session Forex is and what makes it unique.
The New York Session Forex is also known as the North American session, and it starts at 8:00 AM EST and ends at 5:00 PM EST, overlapping with the European session for four hours. The New York session is responsible for the highest trading volume of all sessions, accounting for about 19% of the total daily Forex market turnover. The New York session opens when the European session is about to close, resulting in a high level of trading activity.
One of the unique features of the New York session is the high liquidity it offers. Since New York is the financial capital of the world, it attracts a lot of investors and traders from different parts of the world. This session is the most active and volatile because it coincides with the opening of US stock markets, and it is when traders make decisions based on news releases from the US economy.
The US dollar is the most traded currency in the world, accounting for about 88% of the total Forex market turnover. During the New York session, other major currencies such as the Euro, Japanese Yen, British Pound, and Swiss Franc are also heavily traded. The New York session is also known for its significant impact on the major currency pairs‘ exchange rates, such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
The New York session is characterized by high volatility and liquidity, making it an excellent opportunity for traders looking to make quick profits. Traders can take advantage of the high volatility by using technical analysis to identify trends and price movements. The New York session is also known for its significant price movements during news releases, making it an excellent opportunity for traders to capitalize on market volatility.
One of the essential news releases during the New York session is the US Non-Farm Payroll (NFP) report, which is released on the first Friday of every month. The NFP report is a critical economic indicator that measures the number of jobs added or lost in the US economy, excluding the farming industry. The NFP report is closely watched by traders as it has a significant impact on the US dollar and other major currencies.
Another significant news release during the New York session is the Federal Open Market Committee (FOMC) statement, which is released eight times a year. The FOMC statement contains information about the US Federal Reserve’s monetary policy, such as interest rate decisions and quantitative easing programs. The FOMC statement is closely watched by traders as it has a significant impact on the US dollar and other major currencies.
In conclusion, the New York session Forex is the most active and volatile session, characterized by high liquidity and significant price movements. It offers traders an excellent opportunity to make quick profits by taking advantage of market volatility. Traders can use technical analysis to identify trends and price movements and capitalize on significant news releases such as the US Non-Farm Payroll report and the Federal Open Market Committee statement. Understanding the New York session Forex is crucial for traders looking to maximize their profits and minimize their risks.
