ishmaelDee
New Member
Since the Tokyo session is when news from Australia, New Zealand, and Japan comes out,
this presents a good opportunity to trade news events. Also, there could be more movement in
yen pairs as a lot of yen is changing hands as Japanese companies are conducting business.
Take note that China is also an economic super power, so whenever news comes out from
China, it tends to create volatile moves. With Australia and Japan relying heavily on Chinese
demand, we could see greater movement in AUD and JPY pairs when Chinese data comes in.
London 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. It's
no wonder that it is considered the forex capital of the world with thousands of businessmen
making transactions every single minute. About 30% of all forex transactions happen during
the London session.
Below is a table of the London session pip ranges of the major currency pairs.
Pair London
EUR/USD 114
GBP/USD 127
USD/JPY 66
AUD/USD 83
NZD/USD 72
USD/CAD 96
USD/CHF 102
EUR/JPY 129
GBP/JPY 151
AUD/JPY 107
EUR/GBP 61
EUR/CHF 109
Here are some neat facts about 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 amount 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.
this presents a good opportunity to trade news events. Also, there could be more movement in
yen pairs as a lot of yen is changing hands as Japanese companies are conducting business.
Take note that China is also an economic super power, so whenever news comes out from
China, it tends to create volatile moves. With Australia and Japan relying heavily on Chinese
demand, we could see greater movement in AUD and JPY pairs when Chinese data comes in.
London 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. It's
no wonder that it is considered the forex capital of the world with thousands of businessmen
making transactions every single minute. About 30% of all forex transactions happen during
the London session.
Below is a table of the London session pip ranges of the major currency pairs.
Pair London
EUR/USD 114
GBP/USD 127
USD/JPY 66
AUD/USD 83
NZD/USD 72
USD/CAD 96
USD/CHF 102
EUR/JPY 129
GBP/JPY 151
AUD/JPY 107
EUR/GBP 61
EUR/CHF 109
Here are some neat facts about 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 amount 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.
