euro exchange rate usd
Time to Trade Foreign Exchange
Is there a specific time to trade forex? Read this very infomative article about Best Time to Trade Forex. Different from share market, the currency exchange market is open 24 hours a day during the 5 business days. However this doesn’t mean that the currency exchange market is getting the same number of activities or price changes during all these days. There is much more activity on the foreign exchange markets at certain times of a day and normally, the best times to trade are when the markets are busiest.
The two biggest trading floors for currency trading are UK and the New York markets. Even though the England does not use the euro, most European countries are within 1 hour time difference from the UK, as is Switzerland. USA time zones also include Canadian. So between the US and UK sessions cover the largest part of the major currencies that are exchanged.
The UK market starts at 8.00 UTC and finishes at 16.00 UTC. The currencies that are primarily active during this forex session are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of forex trades.
The US session begins at 13.00 UTC (8.00 EST) and finishes at 22.00 UTC (17.00 EST). The most traded currencies during this times are USD, EUR, GBP, AUD (Australian dollar), JPY (Japanese yen) and CAD (Canadian dollar).
The max out trading hours, as you might expect, is for the period of three hours when the US and UK times overlap and the trades are active in both UK and New York. This period runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).
If you are a person who like to let the trades run over several days or would like to utilize a software like Forex Derivative it may not make too much difference to learn about the peak times on the markets. But if you are doing day forex trading where you will open and close a trade within a few minutes, you will notice majority of the opportunities coming up during the above mentioned hours. And it not uncommon that trading manually during this period of time can beat the Forex Autopilot Software which is the best forex program.
In case you are dealing with cross rate, i.e. a currency pairs that do not involve the USD, you may have another time frame when the currency trading centers in the 2 countries are live for trading.
For example if you were forex trading in AUD/JPY you might see that trading was most active during what is called the Asian session. The Japan and Aussie trading hours are pretty close and on a day when trading was expected you might find some profitable trades during the overlap. But, usually this is a slower trading session for just about all currencies.
Therefore the best time for most forex traders is during that 3 hour window in the early hours in the US and the afternoon in England and Europe, when the Fx trading markets are live on both sides of the Atlantic. Trading can be frantic during those hours, there is utmost liquidity and the currencies are volatile. A lot of the important financial news is released during this period too, particularly toward the beginning. So this time period is the best foreign exchange times if you want to build quick cash.
EUR USD Exchange Rate History Chart 20 years (Beginning June 2010)
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