Characteristics of New York Trade Sessions
Traditional New York trading sessions are also referred to as US trading sessions or US sessions. Although the US session open market at 20.00 pm, but significant movement of forex market occurs before the US market opened. Historically, New York became a center of financial transactions (both stocks and currencies), thanks to its strategic location.
No wonder if this is considered as the world’s forex capital with millions of businesses doing transactions every minute. Approximately 85% of all forex transactions involve the US dollar and occur in the early US session.
Here are some tips you should know about the New York trading session:
- There is high liquidity in the morning, as it overlaps with the European session.
- Most of the reports and economic data released early in the New York session. Remember, about 85% of all trades involve the dollar, so whenever major US economic data is released, it has the potential to move the market.
- As soon as European markets closed their trading hours, liquidity and volatility tended to ease in the US session in the afternoon.
- Currency movements on Friday afternoon (ahead of the weekend) will be seen to subside or liquidity is reduced, as Asian traders sing at karaoke bars while European merchants leave for pubs to watch football matches.
- Also on Friday, there is a possibility of a trend reversal in the second half of the session, as US traders close their positions ahead of the weekend, to limit any weekend news coverage.
You can take advantage of the sentiment of this US trading session. Since all are related to the US dollar then US economic and fundamental sentiment will affect the market.
So also with trading strategies that you can use. In the early US session, the market is still active so any trading strategy can be used. While ahead of the US closing session, you can take advantage of scalping strategy because the movement of the market has begun to subside and directed.