Forex trading is a popular investment option for many traders due to its high liquidity and round-the-clock trading. However, not all forex pairs are created equal. In the US trading session, certain pairs are more actively traded, which makes them more volatile and potentially profitable. In this article, we will explore which forex pairs to trade in the US session.
Firstly, it is important to note that the US trading session starts at 8:00 am EST and ends at 5:00 pm EST. During this time, the New York Stock Exchange (NYSE) is open, which means that there is a lot of activity in the market. This activity creates liquidity, which is the lifeblood of forex trading.
The most actively traded forex pair in the US session is the EUR/USD. This pair accounts for approximately 28% of the total forex market trading volume. The EUR/USD is also known as the “euro-dollar” and is the currency pair that represents the exchange rate between the euro and the US dollar. The reason why this pair is so popular is that both the euro and the dollar are widely used currencies, and there is a lot of trading activity between the US and Europe. Additionally, the European Central Bank (ECB) and the Federal Reserve (Fed) are two of the major central banks that influence the global economy, which makes the EUR/USD a popular pair to trade.
Another popular forex pair to trade in the US session is the USD/JPY. This pair accounts for approximately 13% of the total forex market trading volume. The USD/JPY is also known as the “dollar-yen” and represents the exchange rate between the US dollar and the Japanese yen. This pair is popular due to the high liquidity of the Japanese yen and the strong economic ties between the US and Japan. Additionally, the Bank of Japan (BoJ) and the Federal Reserve (Fed) are two of the major central banks that influence the global economy, which makes the USD/JPY a popular pair to trade.
The GBP/USD is another popular forex pair to trade in the US session. This pair accounts for approximately 9% of the total forex market trading volume. The GBP/USD is also known as the “pound-dollar” and represents the exchange rate between the British pound and the US dollar. This pair is popular due to the economic ties between the US and the UK and the high liquidity of the British pound.
The AUD/USD is also a popular forex pair to trade in the US session. This pair accounts for approximately 6% of the total forex market trading volume. The AUD/USD is also known as the “aussie-dollar” and represents the exchange rate between the Australian dollar and the US dollar. This pair is popular due to the strong economic ties between Australia and the US and the high liquidity of the Australian dollar.
Lastly, the USD/CHF is a popular forex pair to trade in the US session. This pair accounts for approximately 5% of the total forex market trading volume. The USD/CHF is also known as the “dollar-swiss franc” and represents the exchange rate between the US dollar and the Swiss franc. This pair is popular due to the safe-haven status of the Swiss franc and the high liquidity of both currencies.
In conclusion, there are several forex pairs to trade in the US session that offer high liquidity and potential profitability. The most actively traded pairs in the US session are the EUR/USD, USD/JPY, GBP/USD, AUD/USD, and USD/CHF. As with any trading strategy, it is important to conduct thorough research and analysis before entering any trades. By doing so, traders can increase their chances of success and profitability in the forex market.
