Work hours in Forex
The Forex market operates from Monday till Friday. The only exceptions are public holidays when banks are closed. Forex trades are held for several trading sessions corresponding to the specific region.
|Session of Forex trading||GMT|
|Singapore, Hong Kong||00:00||09:00|
|European||Frankfurt, Paris, Zurich||07:00||16:00|
The Forex trading begins at 20:00 GMT in Wellington. For Asian countries, it is Monday morning, for Europe — Sunday night, and for the residents of the North America – the middle Sunday. The Wellington market opening is a very important period for traders, because at that time you can see significant gaps between the quotes in the close of markets on Friday evening and the indicators observed at the moment. These fluctuations are usually associated with events on the weekends, so experienced traders always watch the news affecting the prices of traded currencies.
The Tokyo market opens at 23:00 GMT. At this time, traders in the European and North American markets are watching economic developments in the Asian region because they can affect the prices of the underlying currencies. In addition, there is a high volatility of EUR/JPY, USD/JPY and AUD/JPY currency pairs during the Asian session. The Yen as the third most traded currency in the world is interesting for many players in the Forex market.
Trading in the European markets starts at 7 am. This time coincides with the second half of the Asian session and the first half of the US. Thus, the European session is a very active period for traders. In addition, the euro is the second most traded currency in the world, which is also a factor contributing to the popularity of the European markets. Interest in the European session is also fueled by the fact that economic data coming from the Eurozone creates the active fluctuations of the underlying currency pairs.
The first half of the American session is the most active period in Forex. This is justified by the facts that: 1) it coincides with the time of the European markets, 2) US dollar is the most traded currency in the world, 3) economic news from North America region are published at this time. After lunch, trading activity gradually fades, although there may be significant volatility spikes caused by unexpected changes in the economic indicators. Bidding stops at 23:00 GMT on Friday.
It is also worth noting that Forex trading is not completely stopped even at the weekend or in the days of global holidays. For example, even on the 1st of January banks in Muslim countries continue to operate and can trade among themselves. But, of course, trading activity, in this case, will be extremely low.