What is the best forex pair to trade during the US session?
The best FX pairs to trade during the New York session are usually the US dollar pairs, such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
The New York session starts at 12:00 and ends at 21:00 UTC. Therefore, the best pair to trade during the NY session is any currency pair with the USD. The same goes for EUR, GBP, and CHF.
The forex market runs on the normal business hours of four different parts of the world and their respective time zones. The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.
Major forex pairs, such as EUR/USD (Euro/US dollar), USD/JPY (US dollar/Japanese yen), and GBP/USD (British pound/US dollar), remain attractive options for night trading due to their liquidity and stable price movements. As these are the most traded pairs in forex, many market participants favour them.
The Best Forex Major Currency to Trade
The EUR/USD currency pair has a positive correlation with the GBP/USD and a negative correlation with the USD/CHF. The euro, the British pound, and the Swiss franc all have a positive correlation.
Majors are forex pairs including the US dollar and six other currencies which make up the vast majority of traded pairs. While EUR/USD boasts the most trading volume by far, these three commodity currency major pairs, AUD/USD, CAD/USD and NZD/USD are the most volatile major pairs and as such received a lot of interest.
Ideal FX pairs to trade during the New York session
As with the London session, you can look to trade major pairs, so EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY and USD/CHF.
While the summer period (June-August) is speculated to show the least returns for many markets across Europe, August is said to be the worst month to trade. The reason for this is that most institutional investors in Europe and North America go on holiday.
- 1 pm to 4 pm (GMT) when both New York and London exchanges are open.
- 12 am to 7 am (GMT) when both Tokyo and Sydney exchanges are open.
- 8 am to 9 am (GMT) when both Tokyo and London exchanges are open.
To make the most of New York sessions, it is better to choose currency pairs with USD involved. The top 3 pairs to trade during New York hours include EUR/USD, GBP/USD, and USD/JPY.
What pairs move 100 pips a day?
Only GBP/USD moves for more than 100 points per day. AUD/USD turned out to be the least volatile currency pair. As for the cross rates, GBP/NZD, GBP/AUD, GBP/CAD, and GBP/JPY are the most fluctuating currency pairs. All of them move on average for more than 100 points per day.
- EURUSD. EURUSD is one of the most traded currency pairs in the Forex market. ...
- GBPUSD. GBPUSD is another best currency to trade for beginners. ...
- USDJPY. USDJPY, also known as the “Gopher,” is another most traded Forex pair particularly suitable for beginners. ...
- USDCHF. ...
- USDCAD.
The most volatile currency pairs include the GBP/AUD, AUD/JPY, AUD/USD, CAD/JPY, NZD/JPY, USD/MXN, USD/TRY, and USD/ZAR.
USD/JPY (US Dollar/Japanese Yen)
Additionally, the US dollar is considered a global reserve currency, making this pair a popular choice among traders looking for a safe and stable investment.
- EUR/USD – Euro Dollar.
- USD/JPY – Dollar Yen.
- GBP/USD – Pound Dollar.
- USD/CHF – Dollar Swiss Franc.
Weekends. It is not recommended to hold trades over the weekend unless your method is a long-term strategy which incorporates holding trades for a long time – weeks, months. A lot can happen over a weekend. All it would take is for one Bank to go bust over the weekend for your position to flip on its head.
When it comes to Forex trading, the least volatile currency pairs are typically the major pairs, such as EUR/USD, USD/JPY, and GBP/USD. These pairs tend to have higher liquidity and are more stable compared to exotic or cross pairs.
While time periods overlap, it is generally accepted that the following periods are the most active for each region: New York: 8 a.m. to 5 p.m. (EST) Tokyo: 7 p.m. to 4 a.m. (EST) Sydney: 3 p.m. to 12 a.m. (EST)
Ideal currency pairs to trade during the London session
These include major pairs like EUR/USD, USD/JPY, GBP/USD, and USD/CHF. Perhaps the most affected by the overlap are the EUR/USD, USD/JPY and GBP/USD due to the interbank activities between the United States and Europe/London.
| Financial instrument | Current price | Change(%) |
|---|---|---|
| AUD/SGD | 0.8786 | +0.14% |
| AUD/USD | 0.6566 | +0.12% |
| AUD/ZAR | 12.3169 | +0.16% |
| CAD/CHF | 0.6526 | +0.17% |
How many days a week should I trade forex?
Overview of the Forex Market Week
The forex market operates around-the-clock, five days a week, thanks to its global nature. This continuous cycle encompasses four major trading sessions: Tokyo, London, New York, and Sydney, each with distinct characteristics.
- Best Months: March, April, May, July, October, November, and December.
- Worst Months: January, June, and September.
Some traders may be able to grasp the basics within a few weeks, while others may take several months or even years to become consistently profitable. It is important to note that mastering forex trading is an ongoing process and requires continuous learning and adaptation.
When is the best time to trade forex in the US? Typically, the US forex market is most active just after the open of the New York session at 8am (EST). At this time, liquidity and volatility will likely be high as traders begin opening and closing their positions according to the market news for that morning.
While available to trade 24 hours a day on weekdays, currency pairs are often the most liquid and volatile from 8am to 12pm EST because of the market overlap between the London stock exchange and the New York Stock Exchange.
