Forex trading is a 24-hour activity that takes place across different time zones. The market is open for business around the clock, from Sunday night to Friday evening. However, there are certain times when the market is more active, and traders can expect higher volatility and liquidity. These times are known as forex sessions, and there are four of them: the Sydney session, the Tokyo session, the London session, and the New York session. But which forex session is first?
The answer depends on how you define “first.” If you’re talking about the first session in terms of time, then it’s the Sydney session. This session opens at 10:00 PM GMT on Sunday and closes at 7:00 AM GMT on Monday. It’s the first session to open after the weekend, and it’s also the least active of the four sessions.
The Sydney session accounts for only 4% of the total forex market volume, and it’s mostly focused on the Australian and New Zealand currencies. The main economic data releases during this session are the Reserve Bank of Australia’s interest rate decision and the Australian employment report.
While the Sydney session is not the most active session, it can still be profitable for traders who specialize in trading the AUD and NZD currency pairs. There is less competition during this session, which can lead to wider spreads and greater volatility.
If you’re talking about the first session in terms of importance, then it’s the Tokyo session. This session opens at 12:00 AM GMT and closes at 9:00 AM GMT. It accounts for about 21% of the total forex market volume, and it’s the first session to open after the Asian markets have closed.
The Tokyo session is known for its volatility, especially during the first hour of trading when the market reacts to news releases from the Asian markets. The session is also important for traders who specialize in trading the JPY currency pairs. The main economic data releases during this session are the Bank of Japan’s interest rate decision and the Japanese GDP report.
If you’re talking about the first session in terms of influence, then it’s the London session. This session opens at 8:00 AM GMT and closes at 5:00 PM GMT. It accounts for about 35% of the total forex market volume, and it’s the first session to open after the Asian and European markets have closed.
The London session is known for its liquidity, and it’s the session where most of the major currency pairs are traded. The session is also important for traders who specialize in trading the GBP and EUR currency pairs. The main economic data releases during this session are the Bank of England’s interest rate decision and the European Central Bank’s interest rate decision.
The London session is also important for traders who use technical analysis. The session’s opening and closing hours coincide with the opening and closing hours of many major stock markets, which can lead to increased volatility and trading opportunities.
Finally, if you’re talking about the first session in terms of impact, then it’s the New York session. This session opens at 1:00 PM GMT and closes at 10:00 PM GMT. It accounts for about 28% of the total forex market volume, and it’s the session where most of the major economic data releases from the United States are announced.
The New York session is known for its liquidity and volatility, especially during the first hour of trading when the market reacts to news releases from the United States. The session is also important for traders who specialize in trading the USD currency pairs. The main economic data releases during this session are the non-farm payroll report, the consumer price index, and the Federal Reserve’s interest rate decision.
In conclusion, the answer to the question of which forex session is first depends on how you define “first.” If you’re talking about the first session in terms of time, then it’s the Sydney session. If you’re talking about the first session in terms of importance, then it’s the Tokyo session. If you’re talking about the first session in terms of influence, then it’s the London session. Finally, if you’re talking about the first session in terms of impact, then it’s the New York session. Regardless of which session you choose to trade, it’s important to understand the unique characteristics of each session and adjust your trading strategy accordingly.
