Sydney Session Forex Pairs

The US Federal Reserve is the central bank to watch, as well as major US data such as Nonfarm Payrolls, Trade Balance, GDP, Industrial Production, and Retail Sales. Night trading on the forex markets has advantages for new traders as volatility tends to be lower and for experienced traders using scalping or automatic trading strategies that tend to work well with less volatility. However, keep in mind that low liquidity tends to increase buy-sell spreads. Remember that only you can identify what are the best currency pairs to trade at night that are suitable for your trading strategy.

So, being active in the Sydney session can provide you with the opportunity to place trades in line with these early-stage trends, and exit at the end of the day when big traders have pushed the market in your favor. Trading sessions can overlap when one session begins tokyo session forex pairs before the end of another session. During this period, the market experiences higher liquidity and volatility due to participants’ activities during the two market sessions. If you’re looking for high profits, then you should consider using forex signals software.

Can I hold forex positions over the weekend and major holidays?

Another week of gains for the Dow Jones index as the Federal Reserve raised official interest rates by 0.25% as expected.

• Currency pairs show varying levels of activity and volatility during the trading day depending on the active traders in the market at any given time.
• Additionally, most news and events that impact the US dollar are typically released in the early hours of the New York open.
• For instance, if you are available to trade from 0800hrs GMT to 1200hrs GMT (during the London session), you are better off trading EUR and GBP pairs.
• One of the best things about using forex signals software is that it’s very easy to use.
• One last note is that this session leans heavily on data released from China.

This type of software will allow you to automatically copy the trades of professional traders. Not only will this help you make money, but it will also help you learn how to trade the markets like a pro. Traders can expect higher liquidity and volatility during this session, making it one of the best times of the day to enter a trade. When it comes to the exotics, the currencies belong to economies that have a limited to no impact on the global economy and will have significantly lower trading volumes and therefore much tighter liquidity. Exotics would, as a result, be far more volatile and would be considered to be of much greater risk, which is reflected in their wider bid-offer spreads. While the EUR – U.S Dollar may be the most traded currency globally, the U.S Dollar – Japanese Yen is the most traded currency through the Asian session and accounts for close to 20% of FX trades on a daily basis.

#5 NZDJPY

The movements between these currencies during this period of time are something for you to pay careful attention to. It is illuminating in terms of how much volatility one can expect to see in a given trading session. Now let’s take a look at the average pip movement of the major currency pairs during each forex trading session. One of the advantages of foreign exchange (forex) trading is that unlike equity markets, the forex markets are open 24 hours a day, six days a week.