Discuss topics related to foreign exchange trading.

Quoted from George_Hindson

Discuss topics related to foreign exchange trading.

What are the best times to trade ? Can you give us as to the pairs and times and the reason why?

TIA

Buddie

Good question and one that I hear often.

Considering that Forex is a 24 hour market it can be a little tough to lay out exact hard and fast times. Naturally, an event can occur at say 6:12 PM EST that will drive a particular currency pair.

However, here are some general guidelines:

Europe Forex Trading Session

London forex opens at 8.00 GMT. Closes at 12.00PM EST or 17.00 GMT. Forex volatility is highest during the European session.

U.S. Forex Trading Session

Opens at 8.00 A.M EST or 13.00 GMT. Closes at 5PM EST or 22.00 GMT.
New York is the second largest forex market place. The busiest time is 8am to noon EST. The trading activity usually winds down after the U.S. afternoon trading period.

Europe-U.S. FX Overlap.

8am - noon EST. The forex market is very active during this period.

Asian-European FX Overlap

2 a.m to 4a.m. EST. Trading tends to be thin during this period.

Asian Forex Session

The Asian session opens at 7.00 p.m.EST or 0.00 GMT. The Asian session closes at 4 A.M EST or 8.00 GMT. Sometimes the volatility is low and other times it can he high.


The majors for the most part are active during all periods labled active above.

Quoted from George_Hindson

Good question and one that I hear often.

Considering that Forex is a 24 hour market it can be a little tough to lay out exact hard and fast times. Naturally, an event can occur at say 6:12 PM EST that will drive a particular currency pair.

However, here are some general guidelines:

Europe Forex Trading Session

London forex opens at 8.00 GMT. Closes at 12.00PM EST or 17.00 GMT. Forex volatility is highest during the European session.

U.S. Forex Trading Session

Opens at 8.00 A.M EST or 13.00 GMT. Closes at 5PM EST or 22.00 GMT.
New York is the second largest forex market place. The busiest time is 8am to noon EST. The trading activity usually winds down after the U.S. afternoon trading period.

Europe-U.S. FX Overlap.

8am - noon EST. The forex market is very active during this period.

Asian-European FX Overlap

2 a.m to 4a.m. EST. Trading tends to be thin during this period.

Asian Forex Session

The Asian session opens at 7.00 p.m.EST or 0.00 GMT. The Asian session closes at 4 A.M EST or 8.00 GMT. Sometimes the volatility is low and other times it can he high.


The majors for the most part are active during all periods labled active above.

Thanks George!!!   I hope others C&P your post & save it for future reference.   

Buddie

What affect could china unhinging its currency from the US' (not that its likley to happen any time soon) have?

I would have to go with the US dollar falling against the Yuan. However, China unpegging its currency to the greenback is not on my radar at this moment.

George -- The way our Canadian looney is going -- Do you think it will be par to the US by end of December 2006 ? The financial gurus on television kept saying a couple of months ago that the Canadian looney would be back in the low .80s range   -- yet it keeps on trucking UPWARDS.  

Buddie

While I'm long term bullish on the looney, as well as australia as a whole its a great China play, I think par by the end of the year could a little to much in that short a time. However, I like that looney and anything is possible.

George, if you had to choose one currency to hold long positions in, what would it be and why?

Seth

Long the Euro against the U.S. Dollar

I'm curious to know why you would long the Euro against the US Dollar, instead of the Canadian Loonie against the US dollar, or even the Yen again the US dollar?

Seth

I agree, we are currently looking for someone to take over the forex board. If we can find someone knowledgeable enough then we will start it back up...

DeMerch