Wakey! Wakey! America! You are the last one to wake up.
That’s right, the New York session is the last one for the day, which starts right after the European traders get back from their lunch breaks.
This will be at 8:00 am EST or 13:00 GMT.
New York is the second-largest trading market and handles approximately 16% of the world’s foreign exchange transactions.
And what do we call the New York session? If you ask your 6-year-old, he might tell you Hot dog session will be a really coooool name for it.
This way traders are always gonna be hungry and the most economically advanced industry in the USA will be the hotdog industry. Yey! Maybe the hot dog will even develop its own currency. SAUS/PRZ, which means sausage to the pretzel. How amazing will that be!
Back to reality! In fact, we refer to it as a North American session, of course.
Many of the transactions in New York take place during the overlap between the United States and Europe, with transactions slowing as liquidity dries up and European traders exit the forex market.
Let’s see a table of the New York session pip ranges of the major currency pairs.
Keep in mind that these pip values were calculated using averages of past data and they are NOT ABSOLUTE VALUES, which means that they can vary depending on liquidity and other market conditions.
The highest volatility is observed from 13.00 to 15.00(GMT).
The highest liquidity is also in the USA morning when it overlaps with the London session.
The economic reports are released during this period, so there is a potential move around the dollar, as the USA currency participates in nearly 85% of the transactions.
Then, it gets quieter after 16.00(GMT), when the Europeans leave the market.
After 18.00 (GMT) you rarely see strong price fluctuations, despite the fact that trading on US stock exchanges continues until 14:00.
There is very little movement Friday afternoon, as the whole world is preparing to go and get drunk during the weekend.
However, there is another side of the coin and Friday afternoon can bring some reversals. During the second half of the session, U.S. traders can close their positions ahead of the weekend, in order to limit exposure to any weekend news.
Which Pairs Should I Trade?
As the US currency is one of the most popular, it can experience significant fluctuations during the US session.
Although the US trading session overlaps with the European currency in just a couple of hours, this Forex trading period is the most active.
This period of time is so dynamic that it is often able to reverse the trend set in the morning.
You can bet that banks and multinational companies will be burning as many calories by ringing on the phones as Anthony Joshua does during a boxing match.
During this period, you can trade almost any pair, but better stick with the major and minor pairs, avoiding the weird ones. We suggest the following pairs: EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, and USD/CHF.
Also, keep in mind that around this time all the U.S. data and reports are released, so if there are not expected dramatic changes, it will shake the market.
As a result of these reports, the dollar can be fluctuating a lot.
Are you confused about the opening times of the sessions and the time zones? Not to worry, our next lesson will make it clear.