The foreign exchange (forex) market is a 24-hour market, but there are certain times during which trading activity is at its highest. The US session, which runs from 8:00 AM to 5:00 PM Eastern Standard Time (EST), is one of the most active sessions in the forex market. During this time, traders from around the world are actively buying and selling currencies. This article will explore the best forex pairs to trade during the US session.
The US dollar is the most actively traded currency in the forex market, and therefore, it plays a major role in determining which currency pairs are best to trade during the US session. The following are the top forex pairs to trade during the US session:
1. EUR/USD
The EUR/USD is the most actively traded currency pair in the forex market. This pair represents the two largest economies in the world, the European Union and the United States. During the US session, trading activity for this pair is at its highest due to the overlap between the European and US markets. The volatility of the pair is high, and it is known for its tight spreads, making it a popular choice among traders.
2. USD/JPY
The USD/JPY is the second most actively traded currency pair in the forex market. This pair represents the US dollar and the Japanese yen. During the US session, trading activity for this pair is high due to the overlap between the Asian and US markets. The volatility of the pair is moderate, and it is known for its tight spreads.
3. GBP/USD
The GBP/USD is the third most actively traded currency pair in the forex market. This pair represents the British pound and the US dollar. During the US session, trading activity for this pair is at its highest due to the overlap between the European and US markets. The volatility of the pair is high, and it is known for its tight spreads.
4. USD/CHF
The USD/CHF is the fourth most actively traded currency pair in the forex market. This pair represents the US dollar and the Swiss franc. During the US session, trading activity for this pair is at its highest due to the overlap between the European and US markets. The volatility of the pair is low, and it is known for its tight spreads.
5. AUD/USD
The AUD/USD is the fifth most actively traded currency pair in the forex market. This pair represents the Australian dollar and the US dollar. During the US session, trading activity for this pair is at its highest due to the overlap between the Asian and US markets. The volatility of the pair is high, and it is known for its tight spreads.
When trading forex, it is important to understand that each currency pair has its own unique characteristics. It is important to research and understand the fundamentals and technical aspects of each pair before placing trades. Additionally, traders should be aware of any economic events or news releases that may affect the currency pair they are trading.
In conclusion, the best forex pairs to trade during the US session are the EUR/USD, USD/JPY, GBP/USD, USD/CHF, and AUD/USD. These pairs are highly liquid and offer tight spreads, making them popular among traders. However, it is important to conduct research and stay up-to-date with economic events and news releases that may affect these currency pairs.
