As European traders return from their lunch breaks, the US session begins at 8:00 a.m. EST, as traders begin to arrive at the office.
The United States session, like Asia and Europe, has one major financial hub on which the markets focus. In New York, around 17% of all forex transactions take place.
The New York session is also known as the “North American” trading session by some traders.
This is because, in addition to New York, large financial centers have arisen in North America, including Toronto and Chicago.
The major currency pairs’ New York session pip ranges are shown in the table below.
These pip values were generated using historical data averages. Please keep in mind that these are NOT FIXED PRICES and may vary depending on liquidity and other market circumstances.
Here are some trading pointers to keep in mind throughout the New York session:
Because it overlaps with the European session, there is a lot of liquidity in the morning.
The majority of economic reports are released shortly before the start of the New York session. Remember that the dollar accounts for roughly 85% of all trades, so whenever major U.S. economic data is released, it has the potential to move markets.
After European markets shut, liquidity and volatility tend to subside during the afternoon session in the United States.
Friday afternoon is rather quiet, since Asian merchants are out singing in karaoke bars and European dealers go out to the pub to watch the soccer match.
On Fridays, reversals are possible in the second half of the session as US traders reduce their positions ahead of the weekend to avoid exposure to potential weekend news.
What Pair Should You Trade?
Because both the US and European markets will be open at the same time, there will be a TON of liquidity.
You can bet that banks and big corporations are destroying the phone lines. This allows you to trade almost any pair, though it is advisable to stick to the major and minor pairs and avoid the odd ones.
Furthermore, because the US dollar is on the other side of the majority of transactions, everyone will be watching the US data that is disclosed.
If these results come in better or worse than predicted, the markets will be thrown for a loop, as the dollar will swing up and down.
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