Just like Asia and Europe, the U.S. session has one major financial center that the markets keep their eyes on.
About 17% of all forex transactions happen in New York.
Some traders also refer to the New York session as the “North American” trading session.
That’s because aside from New York, there are major financial centers open in North America as well, such as Toronto and Chicago.
Below is a table of the New York session pip ranges of the major currency pairs.
These pip values were calculated using averages of past data. Take note that these are NOT ABSOLUTE VALUES and can vary depending on liquidity and other market conditions.
Here are some tips you should know about trading during the New York session:
- There is high liquidity during the morning, as it overlaps with the European 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 tend 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.