Right as
European traders are getting back from their lunch breaks, the U.S. session
begins at 8:00 am EST as traders start rolling into the office. Just like Asia
and Europe, the U.S. session has one major financial center that the markets
keep their eyes on. We're talking of course, about the "City That Never
Sleeps" - New York City baby! The concrete jungle where dreams are made
of!
Below is
a table of the New York session pip ranges of the major currency pairs.
|
Pair
|
New York
|
|
EUR/USD
|
77
|
|
GBP/USD
|
68
|
|
USD/JPY
|
34
|
|
AUD/USD
|
68
|
|
NZD/USD
|
62
|
|
USD/CAD
|
67
|
|
USD/CHF
|
56
|
|
EUR/JPY
|
72
|
|
GBP/JPY
|
77
|
|
AUD/JPY
|
71
|
|
EUR/GBP
|
36
|
|
EUR/CHF
|
-
|
These pip values were calculated using averages of past data from
the month of May 2012. Take note that these are NOT
ABSOLUTE VALUES and can vary depending on liquidity and other market conditions.
Also, the session range for EUR/CHF has not been included since the Swiss franc
has been pegged to the euro at 1.2000 during the period.
Here are some tips you should know about trading during the U.S. session:
·
Most economic reports are released near the start of the New York
session. Remember, about 85% of all trades involve
the dollar, so whenever big time U.S. economic data is released, it has the
potential to move the markets.
·
Once European markets close shop, liquidity and volatility tends
to die down during the afternoon U.S. session.
·
There is very little movement Friday afternoon, as Asian traders
are out singing in karaoke bars while European traders head off to the pub to
watch the soccer match.
·
Also on Fridays, there is the chance of reversals in the second
half of the session, as U.S. traders
close their positions ahead of the weekend, in order to limit exposure to any
weekend news.
Which Pairs Should You Trade?
Take note
that there will be a ton of liquidity as both the U.S. and European markets
will be open at the same time. You can bet that banks and multinational
companies are burning up the telephone wires. This allows you to trade
virtually any pair, although it would be best if you stuck to the major and
minor pairs and avoid those weird ones.
Also,
because the U.S. dollar is on the other side of the majority of transactions,
everybody will be paying attention to U.S. data that is released. Should these
reports come in better or worse than expected, it could dramatically shake up
the markets, as the dollar will be jumping up and down.
Confused
on which sessions start when? we made the next section just for you!
