Previously we had a little discussion about active market sessions, now we will discuss the American market session or often called the New York session. The New York market accounts for at least 19% of total currency trading worldwide. New York is the center of trade and business in America.
As we know that USD is the world currency and almost 90% of trade always involves this US Dollar.
Characteristics of the New York market session
High liquidity during the morning (early trading), because it is overlapping with the European session.
When important US economic news releases will have enormous power to drive prices in the market. 90% of trade in the world involves the US Dollar.
After the European market session closes, liquidity and volatility tend to decline.
On Friday American time, trade dropped dramatically as Asian and European traders stopped trading to enjoy their weekends.
Some trend reversals may also occur frequently over a period of time after the American session. Some traders don’t want to leave open positions to avoid things or news that might occur on weekends.
As in the European market, all pairs of pairs are very attractive trading in the American session. It’s just that you have to give Extra attention at a time when important news will be released, because the Dollar will move wildly even jumping up and down.
- Asian Market Session
- European Market Session
- American Market Session
- The best time for forex trading