When it comes to trading in the forex market, timing is everything. The forex market is open 24 hours a day, five days a week, which means that there are several trading sessions to choose from. However, not all trading sessions are created equal, and knowing which forex pairs to trade during specific sessions can make a world of difference in your trading success.
The two most active forex trading sessions are the New York session and the London session. These sessions are the most heavily traded, and they offer the most liquidity and volatility in the market. Here, we will explore which forex pairs to trade during these sessions, and why they are the best choices.
New York Session
The New York session is the second largest forex trading session, after the London session. It opens at 8:00 AM EST and closes at 5:00 PM EST. During this session, the US dollar is the most heavily traded currency, and the market is influenced by economic data releases from the United States.
The best forex pairs to trade during the New York session are the major currency pairs that include the US dollar. These pairs include:
1. EUR/USD – the euro against the US dollar is the most actively traded forex pair in the world. This pair is highly liquid and volatile, making it an ideal choice for traders who want to take advantage of market movements.
2. USD/JPY – the US dollar against the Japanese yen is another popular forex pair to trade during the New York session. This pair has a strong correlation with the US stock market, and traders often use it as a hedge against stock market volatility.
3. GBP/USD – the British pound against the US dollar is another major forex pair that is heavily traded during the New York session. This pair is known for its volatility, and traders often use it for short-term trading strategies.
4. USD/CHF – the US dollar against the Swiss franc is a popular forex pair for traders who want to take advantage of the safe-haven status of the Swiss franc. This pair is often used as a hedge against economic uncertainty.
London Session
The London session is the largest forex trading session, and it opens at 3:00 AM EST and closes at 12:00 PM EST. During this session, the euro is the most heavily traded currency, and the market is influenced by economic data releases from the European Union.
The best forex pairs to trade during the London session are the major currency pairs that include the euro. These pairs include:
1. EUR/USD – as mentioned earlier, the euro against the US dollar is the most actively traded forex pair in the world. During the London session, this pair is heavily influenced by economic data releases from the European Union.
2. GBP/USD – the British pound against the US dollar is also a popular forex pair to trade during the London session. This pair is heavily influenced by economic data releases from the United Kingdom.
3. EUR/GBP – the euro against the British pound is a popular forex pair to trade during the London session. This pair is known for its volatility, and traders often use it as a hedge against economic uncertainty in the European Union or the United Kingdom.
4. EUR/JPY – the euro against the Japanese yen is another popular forex pair to trade during the London session. This pair is heavily influenced by economic data releases from the European Union and Japan.
Conclusion
In conclusion, knowing which forex pairs to trade during specific trading sessions can make a world of difference in your trading success. During the New York session, it is best to trade the major currency pairs that include the US dollar, while during the London session, it is best to trade the major currency pairs that include the euro. By focusing on these pairs, traders can take advantage of market movements and maximize their profits.
