When Is The Right Time To Trade Forex: New York Session

As participants in Europe are returning from their lunch breaks, the New York forex session is starting at 8: 00 AM EST, as participants start taking their places in the office.  

Just like what is attainable in Europe and Asia, the City of New York is the principal and most important financial centre in the U.S that traders in the market keep watch on like the Biblical wise men watching over their flocks by night.

The city of New York is the sleepless financial hub where dreams are made into reality.

Below is a tabular representation of the New York trade session pip ranges of the most important currency pairs.

We arrived at the values of the pip above by making use of the averages of previous data. Remember that these values are not absolute and can differ, subject to liquidity and such other market circumstances.

Furthermore, the session level for EUR/CHF is not included in the values mentioned above, because during the period, the Swiss franc has been pegged at 1.2000 to the euro.

Below are some important tips to know about trading in the New York session

  • As the New York session overlaps with the European session, especially during the morning, there is a high record of liquidity.
  • Majority of the economic reports and news are publicised close to the start of the New York session. Don’t forget that the Dollar is involved in approximately 85% of the entire transactions. Therefore, any time a large volume of data concerning U.S economic is released, it has the eight to cause major movements in the forex markets.
  • Immediately the markets in Europe closes up business for the day, volatility and liquidity tend to reduce downward during the afternoon session in the U.S.
  • Activities are low during Friday afternoon, because it is the time when traders in Asia are out in town for karaoke and K-pop music/movies while their counterparts in Europe are are cueing up at the pub to watch live soccer action.
  • Additionally, Fridays are the days with the most likely chances of witnessing reversals during the second half of the session, as participants in the U.S close up their positions as a guide against the weekend so they can avoid being exposed to any weekend news.

Which of the pairs should you trade?

Bear in mind that as the U.S and European sessions will be opening at the same time, there will be a large volume of liquidity. You can put your money on it that during this time, banks and many multinational corporations are lighting up the telephones wires everywhere.

This gives you the ample opportunity to trade almost any pair, although the best way out is for you to stick to the major and important pairs while avoiding the weird one altogether.

Moreover, considering that the U.S Dollar stands tall in most of the transactions performed on the other side, all the participants will have eyes and ears wide open to any data released from the U.S.

In the event that these reports, whether better or worse, comes in unexpectedly, it can shake and have adverse effects on the market dramatically, as the Dollar would be leaping up and down like a runaway gymnastic acrobat.

Now, are you wondering which session starts next? We have the next session prepared for you!

Stay tuned.

  • BrokerEUR/USD
    FX Pro 0.91pips. (variable) margin: 3.33%
    OANDA 1.3pips (variable) margin: 3.33%
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