What are the best pairs to trade during london session

It is important to remember that forex trading hours can vary in March, April, October and November, as countries shift to and from daylight savings or summer times on different days.

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Why are the forex market’s trading times important?

The forex market’s trading times are important because, although it is open 24 hours a day, the market is more active during different sessions, or when there is a crossover between two sessions in different geographic locations, which means that spreads are tighter.

However, this increased activity is typically confined to currencies that are found in both locations of a crossover – for example, GBP/USD experiences greater trading volume when both the European and US sessions are open between 8am and 11 am (EST).

The beginning of each trading session is when the big institutions such as investment banks are active, and this is often when relevant economic data for each session is published.

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When is the best time to trade forex in the US?

Typically, the US forex market is most active just after the open of the New York session at 8am (EST). At this time, liquidity and volatility will likely be high as traders begin opening and closing their positions according to the market news for that morning.

Trading forex during the New York session

The New York session has the biggest overlap with the London session, so the GBP/USD cross can be highly liquid. The New York session is the last trading window to close on the 24-hour forex trading clock, and it often experiences high trading volume, as traders seek to squeeze the last bit of profit out of that trading session’s news announcements.

Many USD crosses experience their highest trading volumes during the New York session, and this represents a considerable slice of the forex market with USD included on one side of 44.15% of all daily forex transactions.1 The table below has information about some popular forex pairs and their average daily pip movement during the New York session over a 12-month period starting November 2018.

Pip movement during New York forex session

Just when Asian market participants are starting to close shop, their European counterparts are just beginning their day.

While there are several financial centers all around Europe, it is London that market participants keep their eyes on.

Historically, London has always been at a center of trade, thanks to its strategic location.

Today, London benefits from its time zone. London’s morning overlaps with late trading in Asia and London’s afternoon overlap with New York City.

It’s no wonder that it is considered the forex capital of the world with thousands of folks making transactions every single minute.

It’s no wonder that it is considered thewith thousands of folks making transactions every single minute.

About 43% of all forex transactions happen in London.

Some traders also refer to the London session as the “European” trading session.

That’s because aside from London, there are major financial centers open in Europe as well, such as Geneva, Frankfurt, Zurich, Luxembourg, Paris, Hamburg, Edinburgh, and Amsterdam.

We built a Forex Market Hours tool that will automatically convert all four trading sessions in your local time zone. Use it as a reference until you remember the market hours from memory. 🧠

Below is a table of the London session pip ranges of the major currency pairs.

PairLondonEUR/USD83GBP/USD82USD/JPY36AUD/USD60NZD/USD64USD/CAD66USD/CHF58EUR/JPY80GBP/JPY102AUD/JPY86EUR/GBP40EUR/CHF30

These pip values were calculated using averages of past data. Take note that these are NOT ABSOLUTE VALUES and can vary depending on liquidity and other market conditions.

Also, the session range for EUR/CHF has not been included since the Swiss franc has been pegged to the euro at 1.2000 during the period.

Also, the session range for EUR/CHF has not been included since the Swiss franc has been pegged to the euro at 1.2000 during the period.

Here are some neat facts about the European session:

  • Because the London session crosses with the two other major trading sessions–and with London being such a key financial center–a large chunk of forex transactions take place during this time. This leads to high liquidity and potentially lower transaction costs, i.e., lower pip spreads.
  • Due to the large number of transactions that take place, the London trading session is normally the most volatile session.
  • Most trends begin during the London session, and they typically will continue until the beginning of the New York session.
  • Volatility tends to die down in the middle of the session, as traders often go off to eat lunch before waiting for the New York trading period to begin.
  • Trends can sometimes reverse at the end of the London session, as European traders may decide to lock in profits.

Which Pairs Should You Trade?

Because of the volume of transactions that take place, there is so much liquidity during the European session that almost any pair can be traded.

Of course, it may be best to stick with the majors (EUR/USD, GBP/USD, USD/JPY, and USD/CHF), as these normally have the tightest spreads.

Also, it is these pairs that are normally directly influenced by any news reports that come out during the European session.

You can also try the yen crosses (more specifically,

You can also try the yen crosses (more specifically, EUR/JPY and GBP/JPY ), as these tend to be pretty volatile at this time.

Because these are cross pairs, the spreads might be a little wider though.

Next up, we have the New York session, a jungle where dreams are made of. Hey, isn’t that an Alicia Keys song?

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Although the forex market is usually closed over the weekend, IG is the only UK provider to offer weekend trading on the GBP/USD currency pair. This means you never need to miss an opportunity to trade, as well as enabling you to hedge your weekday GBP/USD positions with a weekend trade on the same market.

Our weekend forex trading hours run from 4am Saturday to 8.40pm Sunday (UK time). Any positions left open past 8.40pm (UK time) on a Sunday will roll over into weekday positions when those markets resume 20 minutes later at 9pm (UK time).

Learn more about weekend trading with IG

Broadly speaking, there are three main sessions to trade forex: the Asia-Pacific session, the Europe session and the US session. The first of these to open is the Asia-Pacific session, with Sydney opening at 9pm (UK time) and closing at 6am (UK time) the following morning. Tokyo – also part of the Asia-Pacific session – opens at 12am (UK time) and closes at 9am (UK time).

The next session to open is Europe, with London – the largest forex centre in the world – opening at 8am (UK time) and closing at 4pm (UK time). The US is the last session to open and to close, with trading in New York starting at 12pm (UK time) and closing at 9pm (UK time), at which point the Sydney session opens again.

It is important to remember that forex trading hours can vary in March, April, October and November, as countries shift to and from daylight savings or summer times on different days. They should also bear in mind, that no single forex trading session is open 24 hours on its own but rather, the forex market itself is open 24 hours because of the different sessions during which trades can be made.

Why are the forex market’s trading times important?

The forex market’s trading times are important because, although it is open 24 hours a day, the market is more active during different sessions, or when there is a crossover between two sessions in different geographic locations, which means that spreads are tighter. However, this increased activity is typically confined to currencies that are found in both locations of a crossover – for example, GBP/USD experiences greater trading volume when both the European and US sessions are open between 12pm and 4pm (UK time).

The beginning of each trading session is when the big institutions such as investment banks are active, and this is often when relevant economic data for each session is published. For example, the UK’s major data releases come out at 8.30am (UK time), while the US tends to publish its numbers from 11.30am, until about 2.30pm (UK time).

These announcements can generate significant volatility depending on the market reaction, so every forex trader needs to know when they are published.

When is the best time to trade forex in the UK?

Typically, the UK forex market is most active just after the open of the London session at 8am (UK time). At this time, liquidity and volatility will likely be high as traders begin interacting with each other. Trading will usually become less liquid at around 10am (UK time), and it will pick up again after the American markets open at around 12pm (UK time).

Trading forex during the London session in the UK

Popular forex pairs to trade during the London session are the majors such as the GBP/USD cross or the EUR/GBP cross. This is especially true during the overlap between the London and New York markets, as well as the European session which is open during almost identical hours to the London session.

The Tokyo-London crossover is historically not as busy as the London-New York crossover because of the simple fact that there is a greater cross over in terms of trading hours between London and New York than between London and Tokyo. The table below has information about some popular forex pairs and their average daily pip movement over a 12-month period starting November 2018 during the London session.

Written by Jane