Trading sessions.
Forex market is open around the clock except Saturday and Sunday, these days, most banks do not work. Working hours of the currency market conditionally divided into three trading sessions - Asian, European and American. Sometimes they are added, and a fourth trading session - Pacific.
In simple terms, the trading session - this time of day when work main currency market participants - banks, funds, brokers, traders, etc. Due to the fact that each of them has its own schedule, you can only roughly indicate the time frame of the trading session - from 9 am to 18 pm. At this time, conducted the most active trades.
At that time, while Americans sleep in Japan in the middle there is a
trade. A few hours before the end of the Asian trading session begins European, and its members can pick up the trend that began during the Asian. Toward the end of the European session begins the US, and so every day, so the Forex - a market round the clock. When one part of the world the evening comes and end the trading in another begins the morning, and the market is just beginning its work. Trading sessions following each other and gradually into each other.
However, the above does not mean that, for example, at exactly 18 o'clock in the evening all the traders stop trading currency. Millions of traders working at night and early in the morning. Forex and so good, that allows you to work at a convenient time for you. However, the trading sessions is very important to consider the reason that currency pairs behave differently depending on the trading session. For example, the Japanese yen movements are most active during the Asian session. Accordingly, the euro itself is the most active in Europe, and the US dollar - during the US trading session.
The most "aggressive" session is considered to be an American. At this time, the US dollar is influenced most of all the factors, and as the dollar is involved in all the major currency pairs, should be very attentive to the American session.
Asian session.
The largest and most powerful economic centers of the Asian session, are Tokyo, Hong Kong and Singapore. Also in this session include Sydney.
As already mentioned, during the Asian session
actively traded Japanese Yen. That it focused the most attention of Asian traders and, consequently, to the pairs involving JPY: USD / JPY, EUR / JPY, GBP / JPY, etc. Good activity is shown, and a pair involving the Australian dollar: AUD / USD, AUD / JPY, AUD / NZD, EUR / AUD and others.
The European session.
Volatility of major currency pairs also increases with the beginning of the London
trading session. In addition to London, to the major economic centers of Europe are Frankfurt, Paris, and in recent years - Moscow. In Europe, we concentrated huge amounts of money, so the European session can significantly affect the exchange rates. This is especially true of the single European currency - the euro, and consequently, the pair with the euro is most active during the European session.
American session.
Often, you can see how the second half of the European session begins active trading on
the Forex market. Volatility of the currency pairs increases, there is a feeling that the
market participants a second wind, and they took up the
trade with renewed vigor. In principle, the way it happens - traders come back from lunch and set to work. But more increase in activity due to the fact that at this time begins the work the American trading session. Consequently, two of the most powerful trading sessions - European and American - as it were superimposed on one another, which leads to an increase in activity. This "overlay" lasts about 3-4 hours.
You are advised to pay special attention to the European and US session, as during the American session, any movement of the dollar to a greater or lesser degree affect all currency pairs involving the dollar.
It should also be borne in mind that the US session - it's not just the US, but also Canada and Brazil. Canada is an active participant in the Forex market, and Canadian dollar (CAD) is quite popular currency. Brazil time zones is approximately midway between Europe and the US, so the beginning of the activity on the part of the Brazilian foreign exchange
market may have an additional impact on the pair EUR / USD. With all that in mind that the US is the main "engine" of the US session. Speaking of the US session, meant it was the United States.
Holidays.
Except Saturday and Sunday, the Forex
market pauses and during holidays. Holidays can be both worldwide and regional. World Day of course is the New Year, so January 1 Forex does not work. It is also important to know that in one country or another national holiday. But knowing all holidays all countries necessarily - just focus on the main market players: the United States, Japan, Britain, France, Germany and Australia. Each country has its own history and its own holidays, so in one country may be a working day, and the other output.
For example, on July 4 - a normal working day for all the countries, all the work, as they say, in the normal mode. However, in the US - this weekend - Celebrate Independence Day, and of course, do not expect in this day much influence the US
trading session on the exchange rate.
Be sure to ask your broker what days work, and what - no. Many brokers are free to decide how many days they will not work.
And to avoid confusion in time zones, time of release of important economic indicators (News) indicates GMT (GMT, Greenwich Mean Time). Earlier GMT considered the starting point of the time - the time in other time zones are measured from Greenwich. Now this is used as a Coordinated Universal Time - UTC. Despite this, the term "Greenwich Mean Time" is very popular.
UTC Coordinated Universal Time (Coordinated Universal Time).
GMT Greenwich Mean Time (Greenwich Mean Time).
MSK Moscow Time (Moscow time).
CET Central European Time (Central European Time).
EST Eastern Standard Time (EST).
And remember, trading sessions have a great influence on the behavior of the currency pairs. However, you can not bind the strong change of quotations only from the beginning of trading sessions, as courses on the motion has the effect a great number of factors.
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