The New York Trading Session – Best Time to Trade USD - Learn to Trade
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The New York Trading Session – Best Time to Trade USD

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Michael Fasogbon

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The US forex trading session is one of the most liquid trading sessions across the globe.

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Despite the various economic crises, the US is considered still the most substantial market.

Just like Europe and Asia, the US forex trading session has one significant financial center which markets keep their eyes on- “the city that never sleeps”- New York City.

New York Trading

The US Trading Session Opening Hours

The New York trading session starts after the European trading session. The session opens at 8:00 AM EST and then closes at 5:00 PM EST.

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DFSA

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ADGM

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FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

The London forex trading session begins at 3:00 AM EST and then closes at noon EST.

Therefore, an “overlap” happens when the London market session overlaps with the US market session, so the overlap s between 8:00 AM EST and 12:00 PM EST.

At the beginning of the New York trading session is usually more volatile than later in the day.

New York holds the most significant portion of the US trading session, accounting for almost 19% of the total trading volume.

Best Forex Pairs to Trade during the US Trading Session

During this session, the major currency that is best to trade is the US Dollar (USD). Therefore, the US forex trading session is the best time to trade the USD.

Understandably, during the New York session, the USD trades have a bull raging, a volatile as well as the wild situation with turbulences of the bid and ask.

The currencies traded in the US trading session and those with excellent pip movement consist of the GBP/JPY, the GBP/USD, and the USD/JPY.

The three currency pairs are the ones that have the potential for enormous profits as a result of the price movement.

New York Trading

It’s believed that almost 95 pips lie in the New York forex trading session. Besides, another currency pair emerging to contend for trading in this session is the USD/EUR.

Also, the neighbour’s currency could be a good option – the Canadian Dollar, which is assumed to be an excellent pair with the USD during this trading session. The USD/CAD has a potential of 84 pips on average.

The New York trading session is highly engaged by moderate level to high risk-takers.

Moreover, the session tries to fit in with the average risk takers due to its attachment to the stock markets as well as the bond markets.

What makes the US session very much attractive is its turbulence. Besides, the forex market is attached and heavily relies on economic as well as political decisions.

Any data, news, or policies move the market, and with the US market being susceptible, it’s trading session also moves.

To benefit from the US trading session, the trader’s currency of choice has to be the USD, and both the short and long positions can be the right decision.

However, for long term trading, non-major currencies such as the NZD and AUD could be a good investment.

On the other hand, for swing traders or day traders, non-major currencies should not even be considered.

 

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The Bottom Line

The best time to trade the USD is during the US forex trading session. Furthermore, trading should start after analyzing properly the economic data released by the government.

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