Treading in the financial markets is a relatively challenging activity, which requires taking into consideration a large number of various nuances to achieve the highest level of progress. In particular, Forex trading hours is a red hot issue, which is often ignored by many newbie traders.
It must be clearly understood what kind of features a certain trading session has. It is necessary to predict the market behavior at one or another time.
The most actively traded currency pairs during the period are those ones that include the Japan Yen (JPY). The extremely high volatility of the given assets can be seen at the end of the session, when the Bank of Japan gets involved in trading. At that moment a large volume of money flows into the market that triggers significant price movements.
Nevertheless, such things occur by no means always. One can very often see such a situation, when the market is very quiet during the Asian session, prices don’t make strong moves and volatility is significantly low. This period is favorable for those traders, who prefer trading in the quiet and mostly sideways market.
The major currency pairs, particularly those ones including the Euro (EUR) and the British Pound (GBP), demonstrate a significant trading activity during this period. The period is characterized by the fact that the largest financial centers of the European Union and England start its active work.
An increase in volatility, which is partially eroded towards a dinner, can be seen at the European open. Towards an evening, when the U.S. session opens in a short time, you can witness another rise in the market activity.
The given trading period is rather aggressive and often unpredictable. When the largest financial institutes located in New York start its work, strong price movements begin in the financial markets.
Based on the above stated facts we can conclude that every session has its specific features, which should be taken into consideration in the course of trading in order to clearly understand the actual market sentiment.