London is the largest and most important dealing center in the world, with a market share at more than 30 percent. New York is the second largest FX marketplace, encompassing 20 percent of global Forex Market volume turnover.
The FX markets tend to be most active when the hours of the world’s two largest trading centers overlap.
The range of trading between 8 am EST. and 4 pm EST constitutes on average 70 percent of the total average range of trading for all of the currency pairs during the European trading hours and 80 percent of the total average range of trading for all of the currency pairs during U.S. trading hours. Just these percentages alone tell day traders that if they are really looking for volatile price action and wide ranges and cannot sit at the screen all day, the time to trade is the U.S. and European overlap. |