They say if you can make it in New York, you can make it anywhere, and this kind of cut-throat mentality certainly can translate to the forex markets, as well. While it might not have the traditional or historic significance of London, it certainly has risen as a new global financial center that the other markets HAVE to recognize because of the sheer numbers. It’s almost as if New York City and the forex markets were made for each other, because they are both known for the 24/7 action!
First things first – with London being the undisputed forex capital of the world, and New York being a force in itself, there is a TREMENDOUS amount of activity at the beginning of the New York session, because of the overlap there. This is perfect for traders with large amounts of money who are waiting for a high liquidity opportunity to make a quick trade. When both U.S. and European markets are both open, you can imagine the kind of activity between banks and multinational corporations. It certainly is a very “liquid” session during this time, that of course dies down during certain times, such as Friday, as all around the world, there will tend to be people relaxing for the weekend, whether it’s young traders hitting the pub in Europe, or older traders in Asia and America retreating with their families, for example. The truth is that even though the market is 24/7, one can certainly find a pattern when traders go off for meals, because they obviously have to eat, and they have to relax at some point during the week!
Below is the obligatory pip ranges using past data of a New York Session:
Humans are not robots, after all, and trading all week can take its toll.
Economic reports tend to come out in the beginning of the session, and keep in mind that forex truly does revolve around the dollar, so New York is by no means a session to downplay. It should be noted that the entire world tends to pay attention to the dollar because of its prominence in currency pairs, as it determines so much, so New York economic data tends to hold more weight than any other city, especially if the news is big.
When the European and New York markets overlap, there will be all sorts of currency pairs to trade, although there is probably no use trading the more obscure pairs during this session, unless you are trading on a specific theme or news.
Okay, so you might understand when data is released, when the market is most liquid, and what pairs might trade the most during a specific time – but this can all be overwhelming. You just want to make money, and finding out when to trade can be confusing? After all, you want to have a schedule, and you don’t want to be sleeping on the session that can make you the most money. When exactly should you trade? Let’s explore that.