|Session||City||Open (EET*)||Close (EET*)|
|Asian||Tokyo||2:00 – 3:00||11:00 – 12:00|
|American||New York||15:00 – 16:00||0:00 – 1:00|
* Eastern European time: GMT+2 winter; GMT+3 summer
Forex is a decentralised market, which operates through various financial centres of the world. Since these financial centres are located in different time zones, the Forex market is open 24 hours a day, five days a week. Friday is the last day of the currency markets operation, because large market participants, including various financial institutions, large funds, companies and banks, are leaving for the weekend.
Depending on the time of trading, the foreign exchange market is divided into trading sessions. Forex trading sessions differ not only in their name and special work schedule but are also characterised by some trading features. In each session, there is a "special" currency characterised by high volatility, which is influenced by fundamental economic factors.
Forex starts its working hours when the Pacific session opens on Monday local time. This session is characterised by rather low volatility, and, as a matter of fact, this is the most peaceful time on the market.
The Asian session follows the Pacific session. Currency pairs that include USD, EUR, JPY, and AUD are traded actively during this period. The trading activity of AUD is caused by the intersection of the working time of this session with the Pacific one.
The opening of the European session starts in financial centres such as those in Frankfurt, Zürich, and Paris. However, trading gets more active only after trading starts in London. There is usually a recession during lunchtime, and the activity restarts by evening. Fairly strong volatility may be noticed during the European session because the European zone has a sufficiently large amount of money turnover.
The most active time on the foreign exchange market is the beginning of the American session because it reaches the opening of trading in New York and the renewal of trading in Europe. Fundamental news of high importance is released at the beginning of the American session. It is characterised by sufficient aggressiveness especially on Friday before the trading is closed.