Forex markets are the most liquid and actively traded financial markets in the world. As a 24-hour market, forex trading never sleeps, and traders can always find opportunities to trade at any time of the day or night. However, some forex markets are more active than others, and this can have a significant impact on trading volumes, liquidity, and volatility. In this article, we will explore which forex markets are the most active right now.
The Forex Market Hours
Before we dive into the details, it’s essential to understand the forex market hours. The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST to Friday at 5 pm EST. The market is divided into three major trading sessions: the Asian session, the European session, and the US session.
The Asian session starts at 7 pm EST and ends at 4 am EST. This session is dominated by the Japanese yen, Australian dollar, and New Zealand dollar. The European session starts at 2 am EST and ends at 11 am EST. It is the most active session and is dominated by the euro, British pound, and Swiss franc. The US session starts at 8 am EST and ends at 5 pm EST. It is dominated by the US dollar.
The Most Active Forex Markets
Now that we know the forex market hours let’s dive into the most active forex markets right now.
1. EUR/USD
The EUR/USD is the world’s most traded currency pair and is the most active forex market. It accounts for around 28% of total forex trading volume. The euro is the base currency, and the US dollar is the quote currency. The EUR/USD is heavily influenced by economic data releases from both the Eurozone and the US, as well as global geopolitical events.
2. USD/JPY
The USD/JPY is the second most traded currency pair, accounting for around 13% of total forex trading volume. The US dollar is the base currency, and the Japanese yen is the quote currency. The USD/JPY is heavily influenced by economic data releases from Japan and the US, as well as global risk sentiment.
3. GBP/USD
The GBP/USD is the third most traded currency pair, accounting for around 9% of total forex trading volume. The British pound is the base currency, and the US dollar is the quote currency. The GBP/USD is heavily influenced by economic data releases from the UK and the US, as well as global geopolitical events.
4. USD/CAD
The USD/CAD is the fourth most traded currency pair, accounting for around 5% of total forex trading volume. The US dollar is the base currency, and the Canadian dollar is the quote currency. The USD/CAD is heavily influenced by economic data releases from Canada and the US, as well as global oil prices.
5. AUD/USD
The AUD/USD is the fifth most traded currency pair, accounting for around 5% of total forex trading volume. The Australian dollar is the base currency, and the US dollar is the quote currency. The AUD/USD is heavily influenced by economic data releases from Australia and the US, as well as global risk sentiment.
Conclusion
In conclusion, the forex market is a 24-hour market, and traders can find opportunities to trade at any time of the day or night. However, some forex markets are more active than others, and this can have a significant impact on trading volumes, liquidity, and volatility. The EUR/USD, USD/JPY, GBP/USD, USD/CAD, and AUD/USD are the most active forex markets right now. As a trader, it’s essential to keep an eye on these markets and use them to your advantage when trading.
